Hedge fund industry (Photo credit: Simen S) |
A new analysis concludes that over the period 1994-2011 the average annual return on a hedge fund investment, after fees, was 9.07 percent. This is superior to the return for equities, bonds, or commodities. Further, the more directional strategies within the hedge fund world produced the highest returns.
The analysis, performed by the Imperial College’s Centre for Hedge Fund Research, was sponsored by both the accounting/auditing giant KPMG and the Alternative Investment Management Association. It goes beyond fixing performance figures to discuss the distribution of that gain: roughly 28 percent went to the hedge fund managers, the remaining 72 percent to the investors.
Numbers Speak for Themselves
“The most interesting point to come out of this research is that it disproves common public misconceptions that hedge funds are expensive and don’t deliver. The strong performance statistics, ... Continue to read.
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