ValueWalk – Hedge Funds have a generally high correlation to the stock market, a new study of hedge fund trends from Barclays PLC points out, but investors appear to be betting this is “the year of the hedge fund revival.”
In the last six year hedge fund assets doubled from $1.4 trillion to $2.8 trillion, but most of this growth was based on performance, not asset flows. The problem for many hedge funds is that performance recently has been subpar, the study titled “What Lies Beneath” observed.