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Hedgies Regain an Edge
All of that talk about regulating the hedge fund industry isn't scaring the money away. Hedge funds globally brought in $60 billion in new money during the first quarter. That's three times more than they raised during the last quarter of 2006, and nearly half of all inflows for last year, according to Chicago-based Hedge Fund Research, which tracks the industry.
These figures are all the more startling considering the dismal returns the fat cat fund managers made in 2006. Hedge funds underperformed the Standard & Poor's 500 Index by nearly three percentage points for the year. With results like that, it's surprising that those pension funds and endowments didn't pour their $60 billion into a Vanguard index fund.
So far in 2007, hedge funds are going a little bit farther towards earning their keep. According to the same research firm, hedge funds gained 2.81 percent in the first quarter, beating the S&P's 0.64 total return.
by Megan Barnett
Laura Rich is a co-founder of Recessionwire, which provides news, advice, perspective and humor about the recession and the recovery.
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