Forbes – A recent article by Stephen Taub (“More than 80% of Hedge Funds Underwater”, Institutional Investor,October 21, 2011) found that 80% of hedge funds lost money on a year-to-date basis, as of September 30. I think hedge funds play a diversifying role in most client portfolios, but they are certainly not a panacea.
The illusion of hedge fund invincibility was shattered in 2008 when the average hedge fund lost 19.1%, according to the Dow Jones Credit Suisse Hedge Fund Index.
