Is it true that most hedge funds lose money?

Discussion in 'Professional Trading' started by crgarcia, Mar 7, 2008.

  1. Just like retail traders, most lose money?

    When talking about average hedge funds I'm talking about small funds managing $10 million dollars, not the big funds like those managed by Jim Simons, Tudor-Jones, etc.
  2. yes
  3. lwlee


    Statement would appear to be true. Guys like Sykes opening up their own micro hedge funds. Astrologists like the one in Wall Street Warriors looking to invest with the "stars".

    The hedge fund boom for the last several years will eventually die down as more funds fail.
  4. Hmmm average for a hedge fund would be like $500m-1.5bln, $10m is a very micro, brand new fund. Probably impossible to get any aggregate research/performance data on funds that small.
  5. BJL


    no way dude. recent pertrac survey. only 350 funds out of 15000 have more than $1 bln in assets.

    median fund about $50mln. 40% of hedge funds have less than $25mln in assets.
  6. BJL


    research shows that on average performance of smaller and newer funds beats the larger established fund, but with a wider spread in performance. some good, some bad, some really really bad.

    the latter can be found among the $1bln plus funds as well as recent events show.
  7. Even Jim Cramer had his own hedge fund.
  8. lwlee


    Even with all his bluster, Cramer knew how to trade. His hedge fund did well.
  9. Pekelo


    I think the original statement goes like this: Most HFs don't outperform the market. That doesn't necesserily mean most HFs lose money, although I wouldn't be surprised. But since the market gives a 8% return in the long run, most HFs can't match that performance...
  10. You have a link for that info ?
    #10     Mar 7, 2008