Hedge funds lose out to equities, again

For hedge funds that made money this year there was only one strategy that really mattered – latching onto the stockmarket rally. For everyone else 2013 proved another tough year as big-name funds as varied as global macro, commodity and computer-driven funds struggled to make money, eating further into the track record of these one-time ‘masters of the universe.’ So far this year the average hedge fund is up 8.2 percent – their best year in three but lower than a near 21 percent rise in the MSCI World Index for stocks. Hedge funds have made returns for their investors of 9.4 percent since 2011, and 39.6 percent since 2009, data from Hedge Fund Research shows, but an investment in a fund tracking global stocks would have made around 32 percent and 75 percent respectively.


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