Financial services firm VanthedgePoint Group has announced that its emerging hedge fund clients have generated average returns of 16.74% in 2006, outperforming the major hedge fund and U.S. stock market indices.
The strong 2006 returns posted by the emerging managers outpaced major hedge fund
indices by over 300 basis points. According to published reports, in 2006 the Hedge Fund
Research Index rose 12.99%, the HedgeFund.net Index advanced 11.76%, The Barclay
Group’s Hedge Fund Index was up 12.35%, Hennessee Group’s Index gained 11.36% and Eurekahedge’s Index advanced 13.4%.
“Our clients’ performance in 2006 confirms academic research that suggests emerging hedge funds outperform their larger peers,” said Geoffrey Tudisco, chief executive officer and founder of VanthedgePoint.
The New York-based firm’s emerging hedge fund clients also outperformed the major U.S. stock market indices, something the major hedge fund indices have not accomplished since 2002, according to Marketwatch.com.
In 2006, the Dow Jones Industrials Average rose 16.29%, the S&P 500 added 13.62%, and the Nasdaq was up 9.52%. Only the Russell 2000 Index, with its return of 18.4%, outperformed the emerging hedge fund managers using VanthedgePoint’s platform.
“Our ability to introduce investors to our clients allows us to add significant value, especially since ‘raising money/marketing’ was cited by 70% of respondents to our second annual Emerging Hedge Fund Manager Sentiment Survey as ‘the most difficult aspect of running a hedge fund,’” said Tudisco.
VanthedgePoint launched in the second quarter of 2006, with the goal of leveling the playing field between smaller emerging hedge funds and their larger multi-billion brethren.