Monday, January 10, 2011

A Strong 2010 for Hedge Funds

Strong performance across hedge fund styles in 2010.



Note that this was a year when most asset classes had strong years, including equities (S&P 500 was up ~15%), fixed income (the BarCap Agg was up ~6.5%), and commodities (DJUBS Commodity index was up ~17%).

Source: Barclay Hedge
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4 comments:

  1. AnonymousJanuary 10, 2011 at 4:19 AM

    ??? Most hedge funds were up between 3 -7%. At best, a paltry year for hedge funds. They reduced return for another year. How is this strong? Your data is not representative of actual hedge funds, but funds "choosing to report", which means a minority of funds reporting due to the lack of performance amongst those NOT reporting.

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  2. JakeJanuary 10, 2011 at 5:16 AM

    i understand their is a level of survivirship bias, but please send me a link to data supporting that 3-7% and i'll post. thanks

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  3. stocksystmJanuary 11, 2011 at 5:44 AM

    Here's a link showing average hedge fund performance was dismal.

    http://stockmarketadvantage.blogspot.com/2011/01/average-hedge-fund-returned-5-in-2010.html

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  4. AnonymousJanuary 21, 2011 at 5:59 PM

    @Jake
    There are many papers out there pointing out the level of survivor ship bias, which has only increased after 2008.

    The only real way to gauge hedge fund performance is to look at the performance of Fund of Funds less their fees, in which case I would say the average hedge fund was up 7% last year.

    http://www.fiercefinance.com/story/survivorship-bias-distorts-hedge-funds-performance-data/2010-03-30

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