(Some) Hedge Funds Soar
Gaudy gains generated by some are reminiscent of the mid 2000s.
Some ‘name’ hedge funds are putting up market-trouncing returns in 2017, helping the industry report its best performance in at least four years in a surprise rebound, Reuters reported.
Managers such as Larry Robbins, Philippe Laffont and Chase Coleman rode bull markets and decreased correlation between securities to score profits of at least 20% through the end of October, Reuters reported.
Charlottesville-based investor Jaffray Woodriff used short-term stock bets to score a 68.3% gain n in a key fund of his $4 billion Quantitative Investment Management. By comparison, the S&P 500 Index was up 15 percent, more than double the benchmark HFRI hedge fund index, which was up 7.23 percent through October, its best annual return since at least 2013.
The last few years have been littered with hedge fund managers who charged steep fees and often promised heady returns only to lose money for investors or close shop entirely, Reuters reported. A roaring stock market and the rise of low-cost investment tools, such as index funds, have also hit the industry.