Hedge Funds Performance

2009 gains obscure last year's losses


A dramatically healthier environment this year - including a rising stock market and a more liquid bond market - have been a boon to hedge funds: About three-quarters of the funds tracked by Absolute Return were positive for the year through May.

But the underlying statistics are less sanguine. Some 55% of the funds that have made gains this year lost money in 2008 and remain below their December 2007 high-water marks.

An analysis by HedgeFund Intelligence of funds' high-water marks indicates that many funds remain in trouble. Worst off are the 8.73% of U.S. funds that lost