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

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of