Sunday, 18 December 2011

2011 Hedge Fund Performance YTD

As anyone who follows the market is aware, 2011 has not been the best performer to date for anyone (both long and short).  The S&P is currently down 3.32% YTD with no signs of reversing and ending positive yet.  Two more weeks are left for it to reverse.

However, it makes one curious as to how the "expert" investment companies are doing, namely the hedge funds. John Paulson, who made his fame in the subprime bets, is well know this year for having his fund virtually collapse due to his bets on financial companies (Citigroup), and others such as the alleged fraudulent China Timber, as well as the recent drop in Gold, his only saving grace.

The Hennessee Hedge Fund Index currently shows an overall performance of -3.9% (as of end of Nov).  The long/short equity index was slightly better at -2.94 and Arbitrage index was better at -2.15%.  The real kicker is the Global index at -8.01%.  With the collapse of Europe markets (Greece down 53% and even Germany down 18% so far) and signs of slowdown in Asia (see Shanghai index), this is no surprise.  What is distressing is the relatively poor underperformance vs the market that these professional hedge fund managers are supposed to deliver.

Hennessee Hedge Fund Index

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