Poor returns and new evidence about correlation cast doubt over the supremacy of hedge funds
The cult of equity investment may be dead for some faint-hearted losers, but with equity markets this cheap, all you need is a better class of fund manager to profit from them. So say the hedge fund marketers. Give us your ugly duckling of a nest egg and we'll hatch you a swan. With mainstream markets on the slide, hedge funds have had a good run. Institutional investors have been slow to accept them, but the argument that hedge funds offer low correlation, and higher and more consistent absolute returns is pretty convincing. Yet just when you thought you'd found a decent strategy, along...
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