Hedge funds are faring well after years of lackluster results, but the returns have not been uniformly strong. A closer look at the returns shows a range of results within strategies and even substrategies. For example, data from Hedge Fund Research’s subindices show that returns for the equity hedge strategy through September have ranged from as high at 17% ... READ MORE >
hedge funds
Hedge funds will be tested as U.S. fundamentals remain frail
Middle market hedge fund managers are coping with a contradiction—as the world unravels due to Covid-19, the S&P 500 is nearing an all-time high. While the markets respond favorably to progress on a vaccine, money managers are looking to a future with a high degree of uncertainty around a possible U.S. recovery amid weak fundamentals. On March 11, the ... READ MORE >
As SBA accepts new applications for Paycheck Protection Program, private equity is not eligible
As the Small Business Administration began accepting applications on Monday for loans under the second round of financing for the Paycheck Protection Program, private equity firms and hedge funds will not be eligible. The SBA released additional guidance for the program on April 24, settling the questions of some private equity and hedge fund managers who ... READ MORE >
As hedge funds struggle, money flows to limited stakes in private equity firms
Amid the soaring markets of the past few years, some in the asset management community have faced a conundrum. Investors have demanded better performance, but asset managers who pursue alternative strategies, like hedge funds, have struggled to keep up. The result is that many hedge funds have closed down, rolled up into a family office or returned ... READ MORE >
Middle market hedge funds, facing a squeeze, look to AI and alternative data
Hedge funds appear vulnerable headed in to 2020. Portfolio gains have been sluggish, fees are at their lowest levels since tracking began, and 2019 ended a five-year period when investors pulled out more money than they invested in the industry. This all took place amid increased geopolitical risk resulting from China trade tensions and, most recently, ... READ MORE >
Hedge fund performance may be tested—again
The average performance of the hedge fund sector since the Great Recession has lagged the returns of passive investments including broad-based equity index funds tied to the S&P 500 as well as exchange-traded funds. The underperformance of hedge funds, a risky but historically high-flying sector whose managers are compensated on their ability to ... READ MORE >