BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Daily Brief >  

Hedgies Regain An Edge

Daily Brief

by Liz Gunnison, Jeffrey Cane, Mark Stein, Laura Rich and Megan Barnett
Main
The Scandal That Keeps On Giving   The "It's Your Fault I Was Wrong" Defense

Recent Blog Posts

Links

Apr 20 2007 12:00am EDT

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.

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.


Connect With Portfolio.com
Like Portfolio on Facebook

Come on, like us—you know you want to.

Follow Portfolio on Twitter

Follow us and if you're an innovative entrepreneur, we'll return the favor.

The Mix

Today's top stories, conversation starters, and the back nine business bites.

spotlight on

Slideshows

500 Startups Hits New York

Dave McClure's brainchild makes its way to New York and introduces East Coast money folks to some intriguing new companies. View Slideshow