Hedge funds struggle
Recovering markets in 2010 meant hedge fund strategies were not a good bet for most investors, according to the latest data released by the EDHEC-Risk Institute.
The institute’s examination of 2010 revealed that none of the hedge fund strategies outperformed the S&P 500 index.
However, the analysis noted that hedge funds had served investors well in dealing with the global financial crisis, saying that all of the strategies except a fund of funds approach had outperformed over the last three years, including through the 2008 crisis.
Looking at December, the institute said a wave of optimism had dominated the stock market and generated a remarkable drop in implicit volatility.
It said that over the year the S&P 500 index had grown by 15.06 per cent to return to the level it achieved in June 2008 before the crash.
AUTHOR
Mike Taylor
Recommended for you
The possibility of a private credit ETF is looking unlikely for now with US vehicles seeing limited uptake, according to commentators, but fixed income alternatives exist that can provide investors with a similar return.
Ahead of the approaching end of the financial year, State Street has shared five tips for advisers who are using ETFs in their client portfolios.
The use of active ETFs in model portfolios by financial advisers is a key factor in the growth of the products for iShares, according to BlackRock.
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
