Even as the S&P 500 flirts with the 2,000 level, up a solid 7.71% through the first eight months of 2014, the hedge fund industry is enduring yet another difficult year.
Once renowned for risk-loving â??cowboyâ?ť trading and double-digit percentage returns, hedge funds have failed to live up to their reputation as money-making machines.
Hedge Funds: Trailing the Market in 2014, Yet Again
According to data compiler Preqin, hedge funds have trailed Standard & Poorâ??s 500 stock index in 2014, both through the end of July, as well as over the past 12 months. Year-to-date through July, the Preqin Hedge Fund All Strategies benchmark posted a gain of 3.47%. Thatâ??s far below the 4.45% gain for the S&P 500 over the same period.
Read more about why 2014 is another lousy year for hedge funds at Eagle Daily Investor.