Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

First Half of '08 Worst Ever for Hedge Funds

0.75% drop is a record for industry that's only reported 1 losing year

By Kevin Spak,  Newser Staff

Posted Jul 9, 2008 12:52 PM CDT

(Newser) – Hedge funds have fallen an average of 0.75% in the first half of 2008, the worst yearly start for the industry since Hedge Fund Research began collecting data in 1990. Even 2002, the only year on record in which the $1.9 trillion industry lost money, was sunnier. "Investors are showing less patience than before to live through the bad times," one analyst tells Bloomberg.

Underperforming funds are the hardest hit, as those with capital seek out fund managers with proven track records in a down market. But so far, Bloomberg notes, the money is staying in the industry. “We don't see investors pulling the plug across the board and putting their capital into cash,” one manager said.

Angela Sabatino, center,of NYSE Euronext talks to a colleague on the floor of the New York Stock Exchange, Friday, Jan. 25, 2008.
Angela Sabatino, center,of NYSE Euronext talks to a colleague on the floor of the New York Stock Exchange, Friday, Jan. 25, 2008.   (AP Photo/Henny Ray Abrams)
Mathew Mandola of Lehman Brothers Market Makers looks to an overhead monitor from the floor of the New York Stock Exchange, Friday, Jan. 25, 2008.
Mathew Mandola of Lehman Brothers Market Makers looks to an overhead monitor from the floor of the New York Stock Exchange, Friday, Jan. 25, 2008.   (AP Photo/Henny Ray Abrams)
Ned Zelles of Wagner, Stott, Bear Specialists throws his hands up while looking at the numbers on the floor of the New York Stock Exchange, Friday, Jan. 25, 2008.
Ned Zelles of Wagner, Stott, Bear Specialists throws his hands up while looking at the numbers on the floor of the New York Stock Exchange, Friday, Jan. 25, 2008.   (AP Photo/Henny Ray Abrams)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Students Revolt Against Big Bank Recruiting

Sarkozy Unveils 'Robin Hood' Tax

Consumer Confidence Soars

Lawmakers Give Inside Info to Big Investors—Legally

Citi Cutting 4,500 Jobs


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne