Times Union – Hedge funds seem so glamorous, but small investors who lack the money for their minimum investments and hefty management fees shouldn’t shed a tear — hedge funds’ recent performancejust doesn’t look that stellar.
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The funds have been in the news lately because of a June court decision that kept them outside the watchful eye of Securities and Exchange Commission regulators. The funds remain basicallyunregulated and their reporting standards are loose, to say the least, but their returns for the year to date still appear to be unenviable.
As of June 20, a Diversified Hedge Fund Composite calculated by Merrill Lynch was up 3.42 percent for the year to date. The average U.S. equity long/short hedge fund was doing worse, down 0.45 percent.
That doesn’t look too great at a time when nearly risk-free three-month Treasury bills are yielding near 5 percent.
“Average hedge funds, whatever that means, appear to be up in the 4 to 4.5 percent” range, said Phil Maisano, head of alternative investments of Mellon Asset Management.
