Hedge funds enter the All-Star break one game above 500
| Jul 25th, 2010 | Filed under: Hedge Fund Industry Trends, Today's Post | By: Alpha Male |
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Baseball fans (and players) look forward their sport’s annual “All Star Break” to enjoy some time away from the game, celebrate it’s history, take stock of what has transpired and look ahead to the second half of the season. Credit Suisse’s semi-annual Hedge Fund Industry Review does essentially the same thing. According to the firm and its partner, Dow Jones Indexes, 51 of every 100 hedge funds hit mid-year with a winning record – leading to overall industry returns of a whopping 0.6% (referred to as “muted” by CS.)
In sports, being one game above “500″ is a pretty lacklustre showing. But when you consider that the Dow Jones Global Index was down over 10% during the same time frame, capital preservation looks like a good strategy. So it’s probably more accurate to say that hedge funds were 10% above 500, not a paltry percent. As we discussed in last week dour “Hedge funds may be nearing all-time highs”, 2008’s annus horribilis actually represented the best relative performance in the history of hedge funds – around +20%. Ten percent is pretty solid too.
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