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
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)
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(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.