– While many big-name hedge funds prospered in 2007, one notable group struggled: funds run by large Wall Street firms and traditional money managers.
As a group, hedge funds returned 12.5% last year, beating annual returns in the Standard & Poor’s 500 index of 5.5%, according to the Credit Suisse Tremont Hedge Fund Index. Despite difficult markets, it was the hedge fund industry’s third-best calendar year when compared to the broader stock market since 2000, according to Lipper Inc.
Funds run by the likes of Atticus Capital, Cerberus Capital Management, Eaton Park Capital Management and Third Point Management Company, contributed to the results with several of their multi-billion dollar funds posting above-average returns for the year, according to hedge fund investors and performance data reviewed by Dow Jones Newswires.
