Monday, 20 February 2017
Last updated 2 days ago
Aug 1 2014 | 1:51pm ET
Hedge funds disappointed in the first half—and the people running them or investing in them expect it to continue to do so in the second.
Despite a stock-market rally, hedge funds posted uninspiring gains in 2014’s first six months, with returns in the low single digits, according to industry indices. With many predicting a major correction, fund managers and institutional investors expect no better in the second, according to a Preqin poll.
More than half of managers and investors expect full-year returns to be in the 4% to 6% range. Practically none believe hedge funds will do as well as they did last year, with only 1% of managers and 2% of investors expecting to match or exceed 2013’s double-digit returns.
“Hedge fund managers and investors alike entered 2014 in a buoyant mood following two years of double-digit returns and large inflows of fresh capital from investors,” Preqin’s Amy Bensted said. But the market has dampened that enthusiasm, she said.