BOSTON, Oct 6 (Reuters) – Hedge funds made money in the third quarter but not as much as the stock market, raising questions whether investors will want to keep paying their hefty fees if they can earn more somewhere else for less.
“Hedge fund investors are rightly wondering about their options at a time hedge fund returns have come down,” said Kevin Campbell, vice president of research at Van Hedge Fund Advisors in Nashville, Tennessee. “I think there might be some decrease in demand, especially in the United States.”
The average hedge fund manager had something to brag about at the end of September when third-quarter returns handily outpaced tiny gains from the first two quarters, weighed down by heavy losses in the convertible arbitrage sector.
