Hedge fund performance rose modestly in May by talk of losses associated with General Motors, according to hedge fund tracking firms, the New York Times reports. Even so, the year has been a wash for many fund of funds.
"This has not been a great year so far," said Antoine Bernheim, publisher of the
"The fundamental appeal of these funds is that they are supposed to be uncorrelated to the markets," said a hedge fund executive who declined to speak for attribution. "If your hedge fund is just riding along with the markets, you should just buy an index fund - it's a lot cheaper."
Some critics believe that hedge funds have become over-dependent on credit derivatives, but three factors affected positive performance of hedge funds: a stock rally, a turnaround in credit derivates, and betting against the value of the euro.
"It's not surprising that this was a good month," said Joshua Rosenberg, president of
The staff of Money Management Executive ("MME") 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 MME, and have not prepared, sponsored, endorsed, or approved these summaries.
