Most ’08 Losses Wiped Out In ‘09

Jan 26 2010 | 11:13am ET

Most hedge funds are no longer looking up at their high-water marks, and most of the illiquid assets that burned the industry are wet once again, according to a new report.

Hedge funds earned an average 19% return last year, with more than four in five funds in positive ground. Even better for the industry, hedge funds have recouped 77% of their 2008 losses, according to Credit Suisse Tremont Index.

The cause of many of those losses is also no more: An estimated 58% of the illiquid assets that “impaired” hedge funds have returned to standard liquidity status. Some $102 billion in assets have been rehydrated, leaving $72 billion high and dry.

One result of that illiquidity and those losses is that more hedge funds are open to new investment than before the economic crisis struck. Just 13% of funds are currently closed, down from 17% in November 2007. That undoubtedly has something to do with the $74 billion in redemptions the industry suffered last year.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note