WEST PALM BEACH, FL (www.hedgeco.net) – In the hedge fund world, a famous manager�s name doesn�t necessarily translate to higher returns.

According to hedge fund analysts and investors, some well known new hedge fund managers have failed to deliver high returns to match the expectations of their investors. As the asset build up in the hedge fund industry continued to grow from one year to another, some of the best Wall Street money managers, strategists and traders have increasingly crossed over to the hedge fund arena. Many are being attracted to the industry by the higher compensation packages that the industry offers compared to the pay by the traditional asset managers such as mutual funds. Some investors however, have found out that celebrity hedge fund manager names don�t necessarily mean such managers will achieve higher returns than others.

In the mutual fund industry, lower manager expectation has allowed the mutual fund managers to continue with business as usual by beating their indexes, even if such fund delivers negative returns to its investors. However in the hedge fund industry hedge fund managers are expected to deliver absolute returns to their investors regardless of market direction.

In 2004, some celebrated heavy duty hedge fund managers delivered poor returns to their funds investors. According to published reports, former Morgan Stanley strategist Barton Biggs’ Traxis Partners delivered 8 percent negative return to investors for the first 10 months of trading. Persons knowledgeable with the situation said the funds trade in oil did not go well, and that trade was largely responsible for such poor results. Executives at Traxis Partners declined to comment on the matter.

Another Manager, Dan Benton, who opened the Andor Capital hedge fund after splitting from hedge fund Pequot Capital, lost about 16 percent on technology bets in 2003, but made modest gains in 2004 according to the report. In 2005, John Muresianu, closed his Lyceum Capital hedge fund, which was launched after leaving the mutual fund firm. The hedge fund was dogged by losses in its first few months of trading.

Aaron Smith, director of the U.S. office of Superfund comments, “It is easy to see their rationale for going into hedge funds, but it doesn’t mean they will be good at it.�

Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net

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