Hedge Fund News From HedgeCo.Net

Hedge Funds Hit An All Time Low – HFR Report

West Palm Beach (HedgeCo.net) – New investments in hedge funds for the first six months of 2008 was below $30 billion, according to Hedge Fund Research, way below the $118 billion raised for the same period the year before, making 2008 is the worst year on record for the industry as the average hedge fund dropped off more than 4%.

According to research, the unexpected downturn will lead investors to rethink their investments or ask fund managers to lower their fees from the current rate of 2% and reduce their 20& cut on profits. Problems at hedge funds may also invite a government probe.

Dan McAllister, treasurer and tax collector of San Diego County, attributed the hedge fund’s popularity to it being seen as a panacea and a sure way to earn big money fast. "But maybe it’s time to be a little cautious, and it’s time to look at things with a more discreet eye," McAllister told the New York Times.

In anticipation of harder times ahead, fund managers are cutting employee Christmas bonuses, said a study slated to be released this week by Glocap, a hedge fund recruitment company. Recruiting firms like Heidrick and Struggle are maintaining a watch list of problematic hedge funds. Tim Holt, a partner in Heidrick who supervises the company’s Wall Street recruitment task, has 100 hedge funds on its watch list and expects 50 to 80 to be added in the next few months.

Alex Akesson

Editor for HedgeCo.Net
Email: alex@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!


About the HedgeCo News Team

The Hedge Fund News Team stays on top of breaking news in the Hedge Fund industry on an hourly basis. Signup to HedgeCo.Net to recieve Daily or Weekly news updates from our team.
This entry was posted in HedgeCo News and tagged , , , , , , . Bookmark the permalink.

Comments are closed.