Thursday, May 30, 2013

Two Things You Should Know If You Want To Be Real About Hedge Funds

From BI:  This morning, two snippets of information about hedge funds caught our eye. If you think about them at all, you should know these facts about their performance and who's behind it.

1. 61% of all the money in hedge funds is managed by the 100 largest hedge funds, according to research firm Prequin. So if you're tracking them you're really tracking the industry.

2. Hedge fund performance has been abysmal since the financial crisis. This year they're up an average of 5% compared to the S&P's 15% gain. Investors have kept putting their money in funds, though. That is, until now, according to Bloomberg:  Hedge Fund Research said in April that funds saw inflows in 14 of the last 15 quarters—but now there is evidence that substandard returns may finally be having an effect….

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