Citigroup Crystal Ball: Steady Year For Hedge Funds

If your hedge fund manager offered you a 10% return for 2007 right now, would you take it? If Citigroup Alternative Investments is right, it might not be such a bad bet.

In a note, the group predicts that hedge funds will average 10% returns after fees, Reuters reports, better than most indices did last year, but trailing the Standard & Poor’s 500’s 13.6% return.