Hedge Funds Severely Underperform

Hedge Funds Severely Underperforming This Year - MoneyBeat - WSJ: "Hedge funds typically shine when markets struggle and underperform during long rallies, largely because they hedge their bets to try to generate steady performance. But the gap this year has been wider than usual. Fewer than 5% of the hedge funds that Goldman monitored have outperformed the S&P 500 this year, while about 25% of these funds have posted absolute losses. Goldman’s analysis tracked the investments of 708 hedge funds that had $1.5 trillion of gross equity positions ($1 trillion long and about $500 billion short) as of the beginning of the third quarter. Google Inc.’s shares were the most widely held by hedge funds, followed by Apple and  AIG. Citigroup and General Motors rounded out the top five, according to Goldman" (read more at link above)


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