Hedge Funds First Half
Hedge Funds Post Fourth-Worst First Half Start
Hedge funds had their fourth-worst first half since industry performance-tracking began as Europe's sovereign debt crisis and concern about a slowdown in the global economic recovery hit equity and credit markets, consulting firm Hennessee Group said Monday.
An index of hedge funds run by Hennessee climbed 0.2% in the first half of 2010. The only years with worse performance in the first six months of the year were 2008, 2002, and 1994, the firm noted. Hennessee has been tracking performance in the industry since 1987.
"In 2008, the credit crisis began to unfold in the first half of the year. In 2002, poor performance was due to most hedge funds reducing short portfolios as they attempted to pick the bottom of the dot com bubble," Charles Gradante, co-founder of Hennessee Group, said in a statement. "In 1994, hedge funds experienced losses as rising global interest rates caused bond prices to plunge." Source