Volatility Minces Returns
By BEVERLY GOODMAN | MORE ARTICLES BY AUTHOR
Why John Paulson—and many other hedge fund managers—did so poorly in 2011.
Where have all the stockpickers gone?
Even John Paulson has apologized.
It’s no secret that 2011 was a tough year. But investors who sought refuge in hedge funds—especially those thought to excel in choppy markets—were sorely disappointed. Not to mention none the richer.
As of Nov. 30, the 2,000 hedge funds tracked by Hedge Fund Research are down, on average, 4.5%, trailing the Standard & Poor’s 500 by almost four points. “This is only the third year since 1990 that the hedge-fund index has ended on a decline,” says HFR president Ken Heinz.