Hedge Funds Offered Weak Returns in 2010

Summary


NEW YORK/LONDON (Reuters) - Hedge funds often claim to offer strong returns that are not correlated with broader markets, but in 2010 many failed on both of those counts.

That failure came in large part because hedge funds cannot make as many bets with borrowed money, analysts said.

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Hedge Funds Offered Weak Returns in 2010

Hedge funds on average returned just 4.52 percent this year to Dec. 28, according to Hedge Fund Research's HFRX index. That is short of the FTSE 100's 10.5 percent jump or the Standard & Poor's 500 stock index's 12.7 percent rise.

Tho...

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