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Hedge Funds Register Negative Returns in April for Second Straight Month

By    |   Friday, 09 May 2014 11:40 AM

Hedge funds haven't exactly been hitting it out of the park lately. They fell 0.17 percent on average in April, following a 0.33 percent decline in March, according to HFR research firm.

This marks the first time funds have slipped for two consecutive months since April and May of 2012. Hedge fund returns trailed those of both stocks and bonds last month, The Wall Street Journal reports. The S&P 500 climbed 0.74 percent in April, including dividends.

This may make hedge fund investors wonder why they're paying such high fees for sub-par performance.

Editor’s Note:
5 Shocking Reasons the Dow Will Hit 60,000


Brad Balter, a Boston financial adviser who helps wealthy investors choose hedge funds, says his clients are considering a halt to their investments in hedge funds.

"I'm not saying you should judge people in a single quarter, but there's less rope for poor performance," he tells The Journal. Hedge funds have generally registered a "mediocre" performance over the last few years, Balter adds.

The negative performance stems from troubles encountered by some star fund managers, according to The Journal. That includes Coatue Management's Philippe Laffont, an alumnus of Julian Robertson's Tiger Management.

But some hedge fund heavyweights are still bringing home the bacon, at least for themselves. David Tepper, Steven Cohen, John Paulson and James Simons each earned more than $2 billion last year, according to Institutional Investor's Alpha magazine.

Tepper of Appaloosa Management led the way at $3.5 billion. He was followed by Cohen of SAC Capital Advisors at $2.4 billion, Paulson of Paulson & Co. at $2.3 billion and Simons of Renaissance Technologies at $2.2 billion.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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Hedge funds haven't exactly been hitting it out of the park lately. They fell 0.17 percent on average in April, following a 0.33 percent decline in March, according to HFR research firm.
hedge, funds, negative, returns
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2014-40-09
Friday, 09 May 2014 11:40 AM
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