Hedge Funds, Mutual Funds Fall Behind In First Half Of 2008
Looks like the first six months of the year haven’t been too kind to U.S. hedge funds and stock mutual funds. According to the Internet news site NewsMax.com yesterday:
U.S. hedge funds, which often promise to make money in all markets, were in the red during the first half of the year but did not lose nearly as much as mutual funds, according to data released on Tuesday.
Hedge Fund Research said the average hedge fund is off 0.75 percent since January after slipping 0.68 percent in June.
Data from the Chicago-based firm, which specializes in alternative investment information, revealed that more funds went out of business during these first six months than a year ago in the same period. In addition, fewer new funds have started up.
“Please Stop The Pain”
The first half of 2008 wasn’t much better for mutual funds either. According to NewsMax.com:
Still, hedge funds compare very favorably with U.S. stock mutual funds, which lost an average of 10.09 percent in the first six months of the year, according to Lipper Inc, a unit of Thomson Reuters.
Sector stock funds lost 6.07 percent and world stock funds fell 11.54 percent, the Lipper data show.
It’s a good thing fund managers haven’t put a dime of their own money in domestic stock funds (46% of the time) and foreign stock funds (60% of the time) they’re paid to manage, right?
Source:
“U.S. Hedge Funds Lose in First Half, Mutual Funds Worse”
NewsMax, July 9, 2008
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