Hedge Funds Stock Market Trading
Many Hedge Funds Hurting from Volatility, Debt Crisis
While yesterday we covered the few top hedge funds who have been able to make gains during the tumultuous global debt crisis. Now, with the last few trading days hurting many investors, hedge funds are said to be suffering just like many traders. While the evidence is largely anecdotal at the moment, many hedge funds were reportedly wounded during U.S. stock sell-off yesterday and the volatile trading last week.
Hedge funds, considered the stalwarts of the investing world, are feeling the pain just like everyone else.
Monday's panicked U.S. stock sell-off, which drove the S&P 500 down more than 6 percent, is affecting investors from average Americans to the world's richest hedge fund managers, investors and fund managers said.
The losses triggered by Europe's debt crisis and the downgrade of America's triple-A credit rating are not expected to be as damaging as the 2008 financial crisis, but they are sure to be very deep and could make 2011 very difficult for the $2 trillion (1.22 trillion pounds) hedge fund industry.
Indeed, through the end of July industry numbers were mediocre at best with the average fund up only 1.55 percent, according to Hedge Fund Research. Source
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