Hedge Fund Reader : Hedge Funds returns to be overall lower this year

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July 17, 2005

Hedge Funds returns to be overall lower this year

Deutsche Bank recently conducted a survey on the hedge fund industry where they surveyed 1,000 respondents with a total of $645 billion in hedge fund assets. The report made public recently indicated that the industry is not really concerned about the overall health of the sector and there is no let down in enthusiasm either. After the dismal performance of the industry earlier this year, the situation is looking up with 1.6% return in June as indicated by Hedge Fund Research of Chicago. Deutsche Bank further revealed that the fund investors are expecting returns in the range of 6 to 8% this year. Last year the average return of the $1 trillion hedge fund industry was 9%. The gains this year are expected to come from investments in individual stocks by tracking economic trends. The survey also indicated that the probability of inflow of money into private partnerships, catering to wealthy individuals and institutions, is less. Investors who are already investing in hedge funds suggested that they ware planning to invest no more than $40 billion which is much lesser than what was seen in the last few years (over $70 Billion annually). International Herald Tribune.com reports:

“Hedge funds may be starting to recover from declines seen in the first four months of the year. The average fund returned 1.6 percent in June, according to Hedge Fund Research, based in Chicago. Last year, hedge funds returned 9 percent, on average.”

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July 17, 2005 in Gossip & Scandal | Permalink