– While many big-name hedge funds prospered in 2007, one notable group struggled: funds run by large Wall Street firms and traditional money managers. <\/p>\n
As a group, hedge funds returned 12.5% last year, beating annual returns in the Standard & Poor’s 500 index of 5.5%, according to the Credit Suisse Tremont Hedge Fund Index. Despite difficult markets, it was the hedge fund industry’s third-best calendar year when compared to the broader stock market since 2000, according to Lipper Inc.<\/p>\n
Funds run by the likes of Atticus Capital, Cerberus Capital Management, Eaton Park Capital Management and Third Point Management Company, contributed to the results with several of their multi-billion dollar funds posting above-average returns for the year, according to hedge fund investors and performance data reviewed by Dow Jones Newswires.<\/p>\n