Tuesday, 28 June 2016
Last updated 7 hours ago
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.