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From Kirsten Bischoff, Opalesque New York:
Many hedge funds added gains in November according to early information released by the Hennessee Group, which reported the Hennessee Hedge Fund Index posted a +1.8% return for the month. However, the drop in returns against market indices (the S&P 500 returned 5.3% in November) also makes it clear that hedge fund managers are happy to end the year quietly and conservatively, lagging the markets in order to lock in gains.
“By and large, investors have been happy to lock in gains where they have them this year,” says Jack McDonald, president and CEO of San Francisco-based hedge fund service provider Conifer Securities, LLC.
While hedge fund performance in 2008 did include asset protection, the industry was largely criticized for not delivering on promises for absolute returns. However, for investors taking a longer-term view, hedge fund performance during the financial crisis has meant insulation against the wider market losses.
Charles Krusen, CEO of New York-based Krusen Capital Management , which runs the LionHedge Platform, says that hedge funds have clearly fulfilled their intended role in clients’ portfolios over the past two years, working to reduce the drawdown in 2008 (staying 50% above equity market performance) and capturing the majority of 20...................... To view our full article Click here
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