Seeking Alpha – As a specialist in understanding sources of business value and applying that to investing, I was interested to see how the Long/Short Hedge funds are doing. Running through some data from the EDHEC database, I created the charts below. The first chart is a visual showing the L/S hedge fund index vs. the S&P 500.
There isn’t a lot to see there. You would find that the L/S index outperformed the S&P 500 etc. There are of course back-fill, survivorship and other biases associated with any fund database which significantly lead to overstating performance. The L/S hedge fund index shows a .77 correlation with the S&P 500.
