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Bailey McCann, Opalesque, New York:
Hedge funds and fund of funds are under the gun from investors as alpha becomes increasingly difficult to generate in the tumultuous world market. Some of the biggest names in hedge funds like Paul Tudor Jones and Daniel Loeb are up overall for June, and much of the first half of 2012 - but, just barely. According to a Reuters report, Jone's fund is up just over 1.5% for June, a positive compared to this time last year, but far lower than his historical track record. A similar look at the fund of funds sector from eVestment shows that redemptions are on the rise as investors look for more direct investing opportunities.
As a group, hedge funds beat the HFRX Global Index's 1.22% gain in the first half of 2012. But, those gains seem paltry compared with the 8% gain posted by the S&P 500 broad market index. Funds have cited the continuing Eurozone crisis as one of the key factors influencing overall underperformance of the industry, although that argument carries a certain weakness compared against broad market equity performance over the same period.
Within the Eurozone, the landscape is pretty cloudy. As Opalesque reported this week, the UCITS Alternative Index Global is down -0.23% i...................... To view our full article Click here
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