Truth About Hedge Fund Performance 2008

Hedge Fund Performance

Truth About Hedge Fund Performance

Truth About Hedge Fund Performance 2008( Hedge funds have been hurt by their overall negative returns in 2008. The truth about hedge fund performance is that it still far outperforms the broader markets. With all of the recent bad press hedge funds have been receiving you would think they had lost twice as much as the S & P 500, the truth is they lost less than 20% while the S & P was down over 38% for 2008.

Counterparty risks, fraud and redemption notices are obviously the hot topics which are hurting the hedge fund industry just as much if not more than performance. Many in the industry hope and believe that many groups are sitting on cash, waiting to allocate and completing much more due diligence before investing back into the markets or hedge funds. Hopefully these issues mentioned above cease to break the front pages of the WSJ and fade away with the weak economy in 2009.

Here is a short snippet from a recent news story on hedge fund performance:
Although hedge funds finished up 2008 with some of the worst numbers to date, they showed some signs of promise in December. According to the latest research by the Hennessee Group LLC, a New York-based advisor to hedge fund investors, hedge funds advanced .51 percent in December.

Hedge funds finished up the year down 19.15 percent according to the research. Although it was a dismal year for funds as a whole, they still outperformed the S & P, which was down 38.5 percent on the year, the Dow Jones, who dropped almost 34 percent, and the NASDAQ Composite Index, which posted a 40 percent drop on the year. source

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1 comment:

Senthil said...

The Data given in this article regarding losses endured by hedge funds in comparison with the other indexes are pretty surprising…considering the fact that the data are from the period where the whole world is suffering from global financial and economic melt down since the great depression, but it is also true that these Hedge funds does require consolidation through tougher regulations by authorities and smarter due diligence from the investors and i also feel that this crisis is an opportunity for this industry to show the difference.

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