Hedge Funds 2012 Performance
Hedge Funds See Best Start to the Year since 2000
Hedge funds tacked on 1.72% to put the average return for this year at 4.07%. According to the Hennessee Hedge Fund Index, that marks the best start for the industry in more than a decade--the year 2000 to be precise.
“Hedge funds are off to the best start since 2000,” Hennessee co-founder Charles Gradante said. “During the first two months of the year, hedge funds have benefitted from a better investment environment relative to 2011, with improved investor sentiment, greater risk taking, lower correlations and lower volatility. Markets are responding to fundamentals, which is benefiting stock pickers. While many risks remain, there is optimism around a better economic outlook for the U.S. and stability in the Euro zone.”
Still, hedge funds have failed to capture most of the upside from the early-year market rally, which has pushed the Standard & Poor's 500 Index up 8.6% in January and February. That could begin to change, according to managing principal Lee Hennessee.
“Hedge funds performed well in February generating gains despite conservative exposures," Hennessee said. "As the investment environment has improved over the last two months, we have seen managers increase exposure levels." Source
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