Hedge funds up 9.1% in second quarter

Hedge funds came back with a vengeance during the three-month period ending June 30, posting the industry's best performance since the fourth quarter of 1999, according to Hedge Fund Research Inc. in Chicago.
JUL 22, 2009
Hedge funds came back with a vengeance during the three-month period ending June 30, posting the industry's best performance since the fourth quarter of 1999, according to Hedge Fund Research Inc. in Chicago. The HFRI Fund Weighted Composite Index gained 9.1% in this year's second quarter. This compares to a 15.2% gain by the Standard & Poor's 500 stock index over the same period. In the first quarter, hedge funds gained 0.4% and the S&P 500 lost 11.6%. According to a report released yesterday by HFR, the strong performance for the alternative-class strategies helped fuel a flood of assets into hedge funds. During the quarter, $100 billion was invested into hedge funds, bringing the industry total to $1.4 trillion, according to HFR. The quarter also saw investor withdrawals. But the $42.8 billion taken out by investors was well below the $103 billion withdrawn during the first quarter and the $152 billion withdrawn during the fourth quarter of last year. Inflows into hedge funds were another sign of an improving economic environment, HFR President Kenneth Heinz said in the report. “Improved liquidity in credit market contributed to narrowing some of the pricing dislocations that were created near the end of 2008, and the combination of improved credit markets, gains in emerging markets, and decreased risk aversion have driven broad-based gains in 2009,” he said.

Latest News

Beyond the Business: Why Advisors Must Help Owners Separate Wealth from Identity
Beyond the Business: Why Advisors Must Help Owners Separate Wealth from Identity

For business owners, the company is often more than an income source. It becomes their largest asset, their retirement plan, and in many cases, part of their identity. Advisors who understand that dynamics can deliver far greater value than traditional financial planning alone

Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow
Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow

John S. Winslow, 57, was indicted just over a year ago for his scheme to steal from an elderly client.

Vestmark, Hamachi push AI further for advisor portfolio intelligence
Vestmark, Hamachi push AI further for advisor portfolio intelligence

Hamachi's new model portfolio partnership and an industry-first solution from Vestmark join the growing wave of AI tools for wealth managers.

Advisor moves: Cetera's enterprise channel draws experienced Osaic duo in California
Advisor moves: Cetera's enterprise channel draws experienced Osaic duo in California

Meanwhile, LPL attracted a five-advisor team managing $380 million in Kansas, while a veteran with stripes from Morgan Stanley, UBS, and Fidelity has joined Prime Capital Financial.

Dynasty CEO teases 'Virtual Shirl' as RIA execs debate AI's workforce impact
Dynasty CEO teases 'Virtual Shirl' as RIA execs debate AI's workforce impact

At Goldman Sachs’ RIA conference, Dynasty’s Shirl Penney said an AI clone trained on his emails and speeches could be the first of “hundreds of digital employees.”

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline