Hedge Fund Reader : Hedge Funds going through a rough patch

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October 22, 2005

Hedge Funds going through a rough patch

These are some testing times for the hedge funds, the tide is against them. Standard & Poor’s Fund Services in its quarterly report, stated that the Fund-of-hedge-fund managers have been facing the toughest times in the second quarter of 2005 since the third quarter of 1998. Fixed income and convertible arbitrage topped the list as the worst performing sectors, followed by equity long/short and managed futures. Last fortnight, Mr. Klaus Diederichs, head of European investment banking, J.P. Morgan stated at the Reuters Corporate Finance Summit, that hedge funds are not prominent players in the European Mergers Market. And finally applying salt on the wounds, a senior official at the International Monetary Fund stated that the Dutch financial market regulator AFM might bring about restrictions to bring transparency in hedge funds operations. Investments & Pensions Europe Reports:

“The second quarter of 2005 saw some of the toughest conditions experienced since the third quarter of 1998 for fund-of-hedge-fund managers,” S&P Fund Services said in a quarterly report. "During April through to mid-May, fixed income and convertible arbitrage were the worst performing sectors. Equity long/short and managed futures also had a tough time," said analyst Randal Goldsmith.

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October 22, 2005 in Research | Permalink