Yes folks read it and weep.
Hedge funds' glory days seem a long way off as they head into a tricky
2013, with bumper profits likely to remain elusive in markets now dominated by
political and central bank action. At least if you can believe Reuters.
Speakers at the Reuters Global Investment 2013 Outlook Summit
said the $2 trillion industry, which has disappointed investors with
below-market returns this year and losses last year, faces a headache making
money in an environment where markets are choppy and not as buoyant.
Hedge funds made double-digit returns in seven out of nine
years between 1991 and 1999, according to Hedge Fund Research's HFRI index, and
made returns of more than 9 percent every year between 2003 and 2007 inclusive
amid rising markets. However, their secret sauce of 'alpha' - profits due to a
manager's skill rather than overall market moves - has been hard to find in the
'risk-on, risk-off' environment where markets can be more influenced by the
words of euro zone politicians and central bankers than companies' fundamentals….
Grab a fresh hankie and go to http://www.reuters.com/article/2012/11/27/us-investment-summit-hedgefunds-idUSBRE8AQ15U20121127
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