Hedge Funds Expect Returns Of Less Than 6% This Year

Jul 21 2014 | 10:54am ET

Hedge fund investors disappointed by last year’s subpar returns should expect more—or, perhaps more accurately, less—of the same this year.

Nearly half of hedge fund managers expect returns of 5% or less this year, according to a Preqin poll. Fully two-thirds expect returns of 6% or less.

Hedge funds have posted returns in the low single digits this year, compared to the better-than-6% return of the Standard & Poor’s 500 Index. Last year, hedge funds barely hit double-digits while the S&P500 soared more than 30%.

The 150 managers, who run $380 billion in assets, told Preqin that they see a correction coming, with stocks at record-high valuations.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Hedge Fund Billionaires Prepare Their Bunkers

Jan 27 2015 | 8:57am ET

If income equality ever leads to insurrection, the world's wealthiest hedge fund...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note