So the Barclay Group, which monitors hedge funds states that hedge fund investments gained 1.01 percent in August while the stock market fell 1.5 percent. While the 1.5 percent drop is before fees, there is no information regarding the net return of the hedge funds. Considering the high fees involved, the real returns may be comparable.
While we’re on the topic of Hedge Funds, the New York Times has a nice story about the former C.E.O. of UBS’s investment bank who quietly stepped down to manage a huge new hedge fund.
Updated July 16, 2010 and originally published September 9, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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Luke Landes founded Consumerism Commentary in 2003 and has been building online communities since 1990. Luke, also known as Flexo, has contributed to PC World Magazine, US News, Forbes, and other publications. 
{ 1 comment }
The hedge fund return after fees would be roughly 0.63%. Most hedges take 20% of
the profits with an upfront fee (2%/year is common). 1% less 20% (performance) less
0.17% (maintenance). The trick to a hedge fund is that they are not supposed to
have very many bad months or they do not survive long.