West Loop Financial LLCA Tipping Point For Hedge Funds – West Loop Financial LLC https://www.westloopfinancial.com Evolutionize Site Wed, 19 Aug 2020 20:50:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 A Tipping Point For Hedge Funds https://www.westloopfinancial.com/2015/03/23/tipping-point-hedge-funds/ https://www.westloopfinancial.com/2015/03/23/tipping-point-hedge-funds/#respond Mon, 23 Mar 2015 09:00:18 +0000 http://evolvemypractice.com/?p=1782 In 2014, the HFRX Global Hedge Fund Index lost 0.6 percent, underperforming the S&P 500 Index by 14.3 percentage points. And while the index outperformed foreign equities, which generally lost between about 2 and 5 percent, it underperformed virtually riskless one-year Treasury notes, which returned 0.2 percent. It also underperformed a typical, globally diversified and...

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]]> In 2014, the HFRX Global Hedge Fund Index lost 0.6 percent, underperforming the S&P 500 Index by 14.3 percentage points. And while the index outperformed foreign equities, which generally lost between about 2 and 5 percent, it underperformed virtually riskless one-year Treasury notes, which returned 0.2 percent. It also underperformed a typical, globally diversified and balanced portfolio allocated 60 percent to stocks and 40 percent to bonds.

Over the long term, the evidence is even worse. For the 10-year period from 2005 through 2014—which includes the worst bear market in the post-Great Depression era—the HFRX index returned just 0.7 percent per year, underperforming every single major equity and bond asset class. The table below shows returns to various indexes.

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