Hedge funds post worst first half in history!
NEW YORK - July 9, 2008 - Fears of
a fresh spate of hedge fund collapses grew today as it emerged that the $2
trillion industry had put in its worst investment performance during the first
half of the year since most credible records began.
The dreadful start, the worst in almost 20 years, was attributed to the slide in world equity markets, the onset of economic gloom in Europe and America and the continued souring effects of the international credit crunch.
Hedge fund returns during the first six months were more dismal than in 1998, when Long-Term Capital Management failed spectacularly, almost bringing the international financial system to its knees and when Russia defaulted on its debt obligations and the Asian crisis raged.
According to Hedge Fund Research, the investment performance among alternative asset managers globally fell by almost 0.7 per cent in June. This took the year to date return to minus 0.75 per cent. The Chicago-based researcher has not recorded such a bad start to a year since it began amassing records in 1990.
