Friday, September 28, 2012

Hedge funds forced to play catch-up



According to FierceFinance it's getting to that time of the year when it's easy to panic if you're an underperforming hedge fund.

Credit Suisse, as noted by Reuters, says there are plenty of signs that hedge funds are ramping up risk in an effort to reverse their lagging returns. Through the end of August, hedge funds were up about 4.5 percent, compared with a 13.5 percent total return for the S&P 500 and 8.2 percent for the MSCI World Index. Hedge funds focused on credit strategies have been the best performers, with returns of more than 7 percent this year, thanks perhaps in part to a surge from European sovereign debt just recently.

Most hedge funds have benchmarks other than the stock market, you never want to admit being outperformed by broad market indexes. There's still time to recover. Credit Suisse's prime brokerage says hedge fund exposure to higher-risk stocks has reached levels not seen since the spring. Holdings in such stocks rose 40 percent in August and now represent about one third of hedge funds' net U.S. exposure….

Find out more: http://www.fiercefinance.com/story/hedge-funds-forced-play-catch/2012-09-27?utm_medium=nl&utm_source=internal#ixzz27m803MIa 

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