New Data Shows a Brutal Year for the Hedge Fund Industry
By Ron Haruni · Oct 17, 2008 · Author's Website
Hedge funds often try to offset potential losses in the principal markets they invest in by hedging their investments using a wide variety of techniques. For this very reason many of them rarely disclose any of their investment strategies because they do not want others to duplicate.
Since hedge funds can invest in nearly and every investment instrument that exists, they are considered to be superior investment vehicles in down markets. This is based on their ability to invest in options and short selling. HSBC data however, reveals that average returns varies widely across hedge funds and it shows, as the following table suggests, that using a broad range of strategies and techniques doesn’t necessarily guarantee absolute returns.
Here is some new hedge fund data - listing top winners and losers for the current year.
Let’s hope hedge fund bleeding stops since they have a tendency when collapsing to drain significant liquidity from key financial markets.
During fiscal ‘07, total assets under the management of hedge funds reached an estimated $1.5 trillion.
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