Hedge Fund Managers, Investors Have Low Expectations For Second Half

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.

In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...


FINalternatives Trending

From the current issue of