Hedge Fund Firm Mutual Funds
Hedge Funds Try to Recoup Losses Through Mutual Funds
As it turns out, mainstream mutual funds can pull in a lot of cash for the hedge-fund industry, which is still dusting itself off from an embarrassing fall during the financial crisis. So far this year, at least a dozen hedge-fund managers have launched mutual funds that use hedging strategies, according to researcher Morningstar Inc.
These moves might prove to be a boon for ordinary investors: An academic study suggests that hedge-like funds run by hedge-fund pros perform better than similar mutual funds offered by other providers.
Hedge funds were all the rage in the mid-2000s, but the 2008 financial crisis hit these investment pools for institutions and affluent investors hard. Not only did the funds go down in value, but also a lack of liquidity in some markets led many hedge funds to restrict investors' ability to pull their cash out. Hedge-fund holders were stuck continuing to pay steep management fees, leaving a bad taste in their mouths, says Nadia Papagiannis, a Morningstar analyst. Source