Reports of the demise of hedge funds returns have not been greatly exaggerated
Hedge funds continue to attract huge quantities of assets, their hypnotic charm working its magic on everyone from pension funds to retail investors. In the last year alone $129bn went into the asset class, double the previous year. Yet recently there have been rumbling sounds in the distance - the warning signs of an investment trend that is about to peak in popularity and slump in performance. In fact, the slump has already happened. The five-year average return for single-strategy funds is only 7.70%, according to Edhec-risk Asset Management Research. For the retail-friendly fund of hed...
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