Hedge Fund Performance Lacking

By on June 3, 2011

Hedge funds have had an average gain of 2.8% through the end of May 2011, according to Channel Capital’s HedgeFund.Net (HFN) research group.   The source states hedge fund assets stood at $2.6 trillion in April, up 2.3% over the previous month.   The average hedge fund lagged the S&P 500 so far this year.

Barron Maestro: The source article stated the S&P 500 was up nearly 3% through May, but Vanguard shows it up nearly 8%.  Hedge funds are once again distinguished by their sub-par returns.  Maybe they make up for it in risk-adjusted performance, but I doubt it.  Once again this is an example of the managers owning the yachts while investors suffer in rafts.

Source: Barron’s


  1. Tyrone Washington

    June 3, 2011 at 8:32 pm

    I suspect most hedge fund investors aren’t paddling around in a raft.

  2. Barron Maestro

    June 3, 2011 at 10:47 pm

    You are correct Tyrone since the minimum investment for most hedge funds is $1 million. Although with average hedge fund returns you’ll be challenged to live lavishly.

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