(Financial Times) — Bearish hedge fund managers have lost out in 2012, with the $2tn industry suffering another year of disappointing returns as traders were wrongfooted by a change in fortunes for the eurozone.<\/p>\n
According to Hedge Fund Research, slight gains in December were likely to mean the average hedge fund manager made just more than 5 per cent over the year — a period watched closely by many investors after disappointing returns in 2011, when the average hedge fund lost 5 per cent.<\/p>\n
Flows into the industry are also expected to have slowed markedly, hit by a wave of high-profile closures. The first 9 months of last year saw hedge funds pull in a net $30bn from investors, compared with $70bn in 2011.<\/p>\n
As with 2011, the eurozone crisis dominated most funds’ trading. Global macro funds, which aim to profit from shifts in economic sentiment, were among the hardest hit, entering a second year of losses for investors.<\/p>\n