Cleveland Business – After a brutal two years filled with the closure of many hedge funds, the managers of those that remain said they’ve proven both their worth and their staying power.
While less volatility may mean more modest returns than what some investors saw in 2009, local hedge fund managers said they are seeing institutional investors come back to the mix and expect solid returns for the year.
By hedging their investments, the funds offer protection for investors wary of suffering too much downside, but they also try to maximize rewards and so often carry a lot of risk. The bad economy sunk a number of hedge funds — 1,471 in 2008 according to Hedge Fund Research Inc., and 858 through the third quarter of 2009 — but managers said existing funds have gained the trust of investors.
