Wednesday, July 30, 2014

99% Of Hedge Funds Interviewed By Prequin Expect Returns Of Less Than 11% In 2014

I had to clean up the headline a bit.
From ValueWalk:

99% Of Hedge Funds Expect Returns Of Less Than 11% In 2014 
These stats are pretty shocking considering the S&P 500 is up over 7% already in 2014 – see more details below
Preqin interviewed 150 fund managers and 100 institutional investors in June 2014 to ascertain their outlook on the hedge fund industry as we entered the second half of the year. When asked to predict the end of year benchmark value in 2014, 99% of hedge fund managers predicted the All Hedge Funds benchmark would be 11% or less, below the 11.69% hedge funds returned in 2013.
Hedge Fund Performance

Hedge Fund Performance: Other Key Findings

  • 53% of fund managers and 51% of hedge fund investors believe the 2014 benchmark will fall between 4-6%.
  • As of June 30th 2014, the Preqin All Hedge Fund benchmark has posted net returns of 3.68%.
  • The bulk of this performance was added in Q2 2014, with the benchmark making gains of 2.33% in the second quarter of the year, versus net returns of 1.32% in Q1.
  • Investors are more positive on the outlook for the benchmark than fund managers; 10% of investors believe the industry will make gains of 10% or more in 2014, versus 7% of fund managers....MUCH MORE