eFinancial News – Hedge funds are having a lousy sovereign-debt crisis. The average fund has failed to protect investors’ capital, losing more than 5% of its value this year, according to Hedge Fund Research. Event-driven, macro and market-neutral strategies are all down for the year, with short-biased funds a rare, and obvious, exception.
Sure, Europe’s main equity indexes are down 5% to 20%, but investing in an S&P 500 index tracker would have delivered better returns. While hedge funds are still seeing net inflows, their pitch to investors is looking weaker and weaker.
