Hedge Funds Sputter Towards Pedestrian '10

Jan 3 2011 | 11:04am ET

Barring a very late, very steep rally, hedge funds seemed likely to fall far short of the broader markets in 2010.

Hedge Fund Research's HFRX Index was up just 4.52% on the year as of Dec. 28, with just three trading days left before the ball dropped. By contrast, the Standard & Poor's 500 Index was up 12.7% by the middle of last week.

The poor performance, following last year's bounce-back from 2008's troubles, calls into question the very concept of alpha, one institutional hedge fund adviser told Reuters.

"Hedge fund managers are significantly more conservative than they were are the beginning of 2008, and I don't think there are really the mega opportunities, like there were in subprime in '07 and '08," Parker Global Strategies' Virginia Parket said. "The only way hedge fund managers are going to beat a bull market in equities is if you have leverage… but investors haven't wanted leverage."


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR