Hedge Fund Industry Struggles Next to Stock Market

July 10, 2012 Debbie Jacobs In the News

Recent data from Hedge Fund Research Inc. has revealed that hedge funds are continuing to trail behind the stock market with growth as low as 0.05%.

The HFR index has risen 1.7% in 2012, while the S&P 500 stock index increased 4.12% in June alone.

According to Kenneth Heinz of HFR, the hedge fund industry, currently valued at $2.12 trillion, has been hit by a “combination of slowing global growth” and the relentless European crisis.

Reuters reports that not all hedge funds have had such a negative year, however:

‘Fixed-income hedge funds and relative value funds both bested the low benchmark as measured by the broad industry index. In the first half of 2012, fixed-income hedge funds were up 7.24 percent and relative value funds rose 4.31%.

For instance, Fortress Investment Group on Monday released performance numbers for its Drawbridge credit fund, which showed the fund was up 6.24% through May.

Equity-focused stock funds were up 2.09 for the first half of the year.’

Hedge Fund Industry, Hedge Fund Research Inc, Hedge Fund Research Index, HFR, Kenneth Heinz,

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