Hedge Funds 2010 Challenges
Survey: Hedge Funds Having´Trying´ Year in 2010
Seven out of 10 said they expect a "trying" year as the industry faces regulatory oversight and competition picks up with more funds likely chasing investment dollars, according to a survey by accounting and audit firm Rothstein Kass.
"It is no surprise that the outlook for 2010 echoes the concerns of 2009 rather than the unbridled optimism of years past and reflects a more conservative approach to the future," Rothstein Kass consultants wrote.
Hedge funds rebounded last year from 2008's deep losses with an average 19 percent return. But this year's market gyrations highlight the pitfalls that are still present two years after the financial crisis. Many prominent managers were caught off guard by May's sharp sell-off and nursed heavy losses that left the funds, on average, roughly flat for the first five months of the year, data from Hedge Fund Research show. June's performance numbers are expected next week. Source