Why Hedge Funds Don’t Suck After All, Despite Trailing The MarketApril 16, 2018
Hedge funds get a bad rap for not beating the market, sometimes even posting losses. But is market beating what the hedgies are supposed to do? The answer: Although besting the S&P 500 or some other market benchmark is a nice-to-have extra, hedge operators’ foremost objectives is to give you diversity and downside protection long-term.
Numerous investors in the celebrated William Ackman’s Pershing Square Capital Management seem to think otherwise. A bunch have withdrawn their money, and its assets are down to about $8 billion from $20 billion in mid-2015, according to a report in the Wall Street Journal.