Hedge funds suffer worst year on record

Hedge funds suffer worst year on record
Hedge funds had their worst year on record in 2008 with up to 300 funds worldwide closing down.

By Helia EbrahimiLast Updated: 8:55AM GMT 15 Jan 2009
Research by Hedgefund Intelligence also revealed an average 12pc fall in the value of hedge funds' investments.
By a median figure, hedge funds in Europe outperformed their American and Asian peers for the first time, down only 4.6pc in the 12 months, according to research based on data from 1,500 funds.
Although 2008 was the industry's worst annual performance, the results show the sector did not perform as poorly as has been suggested by some commentators. It also outperformed the FTSE 100, which fell 31pc, and the Dow, which plunged 34pc.
Some strategies were particularly hard hit, with emerging market equity funds crashing 31pc over the year, equity hedge funds down 13pc; and emerging market debt off 10pc.
In contrast, managed futures funds were the clear winners of 2008, up 16.17pc.
Some analysts believe institutional investors forced into redemptions will this year start to re-invest in hedge funds that are performing well. However, with many still forecasting industry assets could be wiped out by, there are likely to be many more casualties in the next 18 months.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4241934/Hedge-funds-suffer-worst-year-on-record.html