Originally Posted by
Bing
To be fair, that's the point of hedge funds, if they didn't exist a lot of people's pensions would be worth a lot less. They're there to minimise losses when things go wrong which has always struck me as pretty sensible.
. I have to disagree. Most Hedgies are fueled by High Net Worth individuals. Mr Smith in the street should not be putting his money into a hedge if it is his pension pot. One well known London funds saw its flagship fund half in value last year. Hedgies are closing at an alarming rate.....This from 2016: In fact, 2016 had the highest level of hedge fund closures and lowest level of openings since 2008, the year of the financial crisis. And for the second year in a row, the rate of hedge fund closures outpaced that of hedge fund openings, with 1,057 hedge funds closing in 2016,while 729 hedge funds were launched, according to HFR.
So will hedge funds have another rough year in 2017? It’s possible that select funds will do well, though the industry as a whole has underperformed the market every year since 2008. The rising frustration among investors over high fund fees and inconsistent returns? That’s not likely to go away any time soon........2017 was not a good year for most of the hedge community. Most HNW individuals now look at Private Equity.