In the broadest sense, the usefulness of hedge funds comes from their supposed ability to generate returns that are uncorrelated with the market. During the broad asset price appreciation, many hedge funds have underperformed the S&P 500. This is not bad if you understand investing, diversification, and the role of hedge funds in a portfolio. It is bad if you don't understand these things and can only read a historical return.
As retail investors, we have been able to taste some of hedge fund strategies through many relatively new long/short ETFs (exchange-trade funds) and ETNs (exchange-traded notes). Are they performing similarly to the hedge fund industry?
Risk On, Game Over? Hedge Funds Closing
The recent failure and consequent closure of many hedge funds due to unprecedented market conditions is bound to continue if the current financial situation does not improve. Funds are not generating the expected high returns in the
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