WSJ – A host of notable hedge-fund startups are expected to begin operating in 2014, each with at least $500 million—and in one case $2 billion—to invest. Bankers and lawyers who work with such funds say this is likely to be the busiest year for launches since the financial crisis. The resurgence comes even as the industry broadly has underperformed recently when compared with rebounding stock markets.
Hedge funds have trailed the S&P 500 for five straight years. In 2013, stock hedge funds returned an average 14% after fees, according to research firm HFR, compared with a gain of 32% by the benchmark stock index, including dividends.
