Navigating the Hedge Fund Maze - December 2008

While December was not a strong month for hedge funds, it was an interesting one. A variety of twists and turns kept our attention: John Paulson's amazing ability to buck the downward trend of hedge funds, the announcement that hedge funds can now borrow from the Fed, and even hedge fund managers lashing out on the Internet. Even though such headlines spiced up industry news, December offered more of the same disappointment fund managers experienced in November.

Fortunately, 2009 is a new year, and a fresh political environment could also contribute to a change in the market. Look on the bright side, for the most part hedge funds are still doing better than mutual funds.