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Why Hedge Funds Had a Lousy 2013

It was another embarrassing year for Wall Street’s ‚ÄúMasters of the Universe.‚ÄĚ According to HFR, the average hedge fund investing in stocks gained 15% in 2013. Across all strategies, hedge funds returned an average 9.3%. Global Macro investing — the granddaddy of all hedge fund strategies — had yet another subpar year, losing 0.3% on average.

However you slice and dice it, it is egg on the face of the entire industry. By simply being ‚Äúdumb and long,‚ÄĚ the S&P 500 made 32%.

2013: It Was Not a Good Year

For hedge fund managers raised on the mother‚Äôs milk of diversification and trend following, 2013 was one of the worst years on record, compared to simple ‚Äúlong-only‚ÄĚ strategies.

Read more about why hedge funds underperformed in 2013 at Eagle Daily Investor.

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archive

Why Hedge Funds Had a Lousy 2013

For hedge fund managers raised on the mother‚??s milk of diversification and trend following, 2013 was one of the worst years on record, compared to simple ‚??long-only‚?Ě strategies.

It was another embarrassing year for Wall Street’s ‚??Masters of the Universe.‚?Ě According to HFR, the average hedge fund investing in stocks gained 15% in 2013. Across all strategies, hedge funds returned an average 9.3%. Global Macro investing — the granddaddy of all hedge fund strategies — had yet another subpar year, losing 0.3% on average.

However you slice and dice it, it is egg on the face of the entire industry. By simply being ‚??dumb and long,‚?Ě the S&P 500 made 32%.

2013: It Was Not a Good Year

For hedge fund managers raised on the mother‚??s milk of diversification and trend following, 2013 was one of the worst years on record, compared to simple ‚??long-only‚?Ě strategies.

Read more about why hedge funds underperformed in 2013 at Eagle Daily Investor.

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Sign up to the Human Events newsletter

Written By

Nicolas A. Vardy is the London-based International Economics Correspondent for Human Events.

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