Hedge fund managers are drawing the ire of investors this year, as many are failing to beat to...
Nov 24 2012, 09:00 ET
Hedge fund managers are drawing the ire of investors this year, as many are failing to beat to beat the benchmark indices, despite hefty fees. Just 13% of the so-called smart money is outperforming the S&P 500, and a fifth of all hedge funds are actually in the red, according to Goldman Sachs. Even worse, hedge fund managers have all crowded into the same trades, with record low turnover. The problem, Goldman says, is a high correlation between asset classes, and memories of 2008 prompting most managers to hedge themselves against a massive market correction.