Hedge funds struggle
Recovering markets in 2010 meant hedge fund strategies were not a good bet for most investors, according to the latest data released by the EDHEC-Risk Institute.
The institute’s examination of 2010 revealed that none of the hedge fund strategies outperformed the S&P 500 index.
However, the analysis noted that hedge funds had served investors well in dealing with the global financial crisis, saying that all of the strategies except a fund of funds approach had outperformed over the last three years, including through the 2008 crisis.
Looking at December, the institute said a wave of optimism had dominated the stock market and generated a remarkable drop in implicit volatility.
It said that over the year the S&P 500 index had grown by 15.06 per cent to return to the level it achieved in June 2008 before the crash.
AUTHOR
Mike Taylor
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