Hedge funds are dancing with the devil.
They are facing a crisis of confidence and potential lawsuits amid unprecedented fund closures, job losses and — most critically — low investment returns.
It’s finally time to bail, one money man in Short Hills, NJ, warned last week of these leveraged alternative investments for superwealthy and not-so-wealthy middle-class investors.
“Get out,” echoed financial adviser Stephen Ng, as more unwelcome news hit hedgies. “I have been talking about this — and now I think more and more investors are beginning to realize it.”
With just over $3 trillion in assets under management globally, hedge fund magnates are anxiously awaiting a recovery from last year’s feeble industry returns of 5.5 percent, compared with 10 percent for the S&P 500-stock index.
Investors already withdrew $111.6 billion from hedge funds last year, according to eVestment, as some 1,100 funds — the largest total since the 2008 financial crisis — closed, and thousands of pros were axed.
Source: NewYorkPost
The post Hedge funds face a crisis of confidence appeared first on Compliancex.
June 12, 2017 at 06:43PM
from The Compliance Exchange
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