Hedge fund performance in perspective

The average hedge fund lost 0.75 percent in the first half of the year. Some were quick to point out that the decline marked the worst first-half performance since the 1990s. But Breakingviews notes that the Standard & Poor's 500 has fallen 13 percent since the first of the year. Compared to that, hedge funds have performed mightily, so it's fair to say that the first-half loss will not prompt a lot of soul-searching among investors. If anything, institutions want to allocate more to hedge funds. That said, big losses in specific funds will leave a sour taste in many a mouth. My guess is that the big winners that will emerge from all of this are the funds of funds that show real fund-picking acumen.   

For more:
- here's a Breakingviews article

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