Hedge Funds Can’t Complain This Year

November 18, 2017 James Heinsman Hedge Fund News

As the stock-market continues its upward march, hedge funds are reaping the benefits. Hedge Fund Research Inc. reports that hedge funds, on average, are having their best year since 2013.

Hedge funds have been in the dog house in recent years, taking a lot of slack for charging high fees despite lackluster returns. This year less people are complaining and are happy to pocket their higher earnings, despite the continued high fees.

On closer look, however, compared to equity benchmarks like the S&P 500 Index, hedge funds are still lagging behind. The S&P is up so far this year by 15.7 percent, while hedge funds’ average return barely got to 6%.

The best strategies for funds in 2017 were health care and technology. Through September the S&P Tech Index rose by 26%, and the Bloomberg Barclays US Aggregate Total Return Value Unhedged investment grade bond fund returned 3.1%.

Funds in it for the short term fared the worst, with short-bias funds losing 8% and energy and basic materials funds fell by 5%.

Hedge Fund Research Inc, S&P 500, S&P Tech Index,

Comments are currently closed.

Powered by WordPress. Designed by elogi.