Hedge fund returns next year could be up on 2005 as volatility picks up, but investors looking for stellar double-digit returns should steer clear of the industry, analysts said.
However, for those aiming to diversify their portfolios to spread risks hedge funds are still a viable prospect because most of their investment strategies have a low correlation with traditional investment assets such as stocks and bonds.
Analysts think hedge funds will return on average around 7 percent this year, the lowest since 2002.
