The International Herald Tribune reports that, according to Hedge Fund Research, macro hedge funds like Goldman's flagship Global Alpha fund were up, on average, 5.8% in the first 11 months of the year - compared to a 12% gain in the Standard & Poor's 500 stock index through November.
The newspaper quotes Christy Wood, a senior investment officer for global equities at the California Public Employees' Retirement System (Calpers), who said that 2006 'is the third straight year that the global equity markets and long-only managers out-performed hedge funds. If you threw all these in an index fund net of fees, you would have done better than if you put it in the hedge fund industry'.
Goldman's Global Alpha fund is down around 12% this year, and Reuters reports that firm CFO David Viniar told investors Tuesday that its weak performance could put a 'dent' in Goldman's next quarter earnings.
Bloomberg reports that the predominance of hedge funds in London's Mayfair district and surrounding areas is pushing up local rents. The location is much in demand for funds as all those rich hedgies live around there too.
Finally, Bloomberg reports that Alexander Scurlock, soon to take over the running of the $28bn Fidelity European Growth Fund, plans to reduce the number of its holdings to as little as 150 (from around 220), as he seemingly wants to bet more on fewer companies.
Have something to tell us about this article?