Fund performance

There’s a lot to complain about these days, from the effectiveness of the government’s $3 trillion stimulus package to unlimited quantitative easing.

Analysis of their performance — and fees — may reveal some surprises.

With the industry facing ridicule for high fees and low returns, clients have pulled a net $33 billion from the industry in the first quarter, the most over a decade.

Dubbed Disco III, the fund will target leveraged loans, high-yield bonds and collateralized loan obligations.

Some of the industry’s largest names took a hit in last month’s market tumult, including funds run by Ray Dalio, Michael Hintze and Adam Levinson.

The holdings in these top-performers “are companies that will be replaced, from a performance standpoint, over the next decade,” an expert says.

Analysis of two funds in particular shows how important the industry has become to the oil futures markets, as they have attracted record inflows.

Total net assets in Michael Hasenstab's Templeton Global Bond Fund slumped to $22.6 billion as of March 31, public filings show.

“These funds got an assist from the Fed when they were told they would backstop the higher end of the high-yield credit industry,” an expert says.

The setback for the hedge fund, which slid as much as 14% in the first quarter, is another example of the turmoil wrought by the coronavirus.