Hedge fund performance last year was less than stellar, but managers, in the aggregate, were still able to outperform the broad market averages. That’s what they’re paid for — although those pay packages will leave investors with less.
The CSFB/Tremont Hedge Fund Index, a broad measure of hedge fund return, shows an estimated overall gain of 6.6% in 2005. That’s better than the 3% return posted by the S&P 500 before dividends.
Another pan-strategy gauge, the MSCI Hedge Invest Index, showed a less-flattering 4.7% annual return. (Numbers vary among indices because each uses a different subset of funds and managers.)
