Hedge fund-of-funds, registered with the Securities and Exchange Commission to offer more transparency and reach a broader consumer base (see MFMN 9/2/02), have failed on their promise of earning investors a profit, The Wall Street Journal reports.
On top of that, they have failed to attract substantial assets.
CIBC World Markets $96 million Advantage Advisers Multi-Strategy Fund fell 7.41% between its March 27 launch and Sept. 30, according to the funds annual report. Deutsche Banks $22.3 million DB Hedge Strategies fund fell 2.99% between June 28 and Sept. 30, according to an SEC filing.
Another problem these and regular hedge funds face is the fact that the SEC is planning to step up its oversight of them this year.
The staff of Mutual Fund Market News ("MFMN") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MFMN, and have not prepared, sponsored, endorsed, or approved these summaries.