PRINT THIS PAGE The dog that didn't bark: a review of 2007 hedge fund performance29/04/2008. Source: BNY Mellon Asset Management. Dr Robert A Jaeger
The polite word for 2007 is 'challenging'. Most money managers would use less polite language. The collapse of the US credit bubble created challenges for all managers, both long-only and hedge funds. Within the hedge fund community, there were high profile losses at some funds, and equally high profile gains at others, but the hedge fund averages reveal something much less dramatic, namely, decent returns in a tough environment, writes Dr Robert A Jaeger of BNY Mellon Asset Management. The averages fail to capture the drama precisely because they are diversified portfolios, which is one reason why the aggregate hedge fund community was able to survive 2007 in decent shape. Despite endless hand-wringing about hedge funds as a threat to the financial system, hedge funds were not the main cause of the credit crisis, nor were they the main victim. Hedge funds are the explosion that didn't happen: the dog that didn't bark.
Click here to view the full document (pdf 221kb) You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html
BNY Mellon Asset Management is the investment management arm of Bank of New York Mellon. The firm provides financial services to institutions, corporations and high-net-worth individuals, providing asset management and wealth management, asset servicing, issuer servicing, clearing services and treasury services through a worldwide team. For more information go to www.bnymellon.com.
© 2008 The Bank of New York Mellon Corporation. All rights reserved. Any redistribution requires (i) the prior written consent of The Bank of New York Mellon Corporation or its applicable affiliates and (ii) reproduction of all copyright and proprietary notices.
|
