Risk Aversion Puts Hedge Funds Behind S&P 500: Chart of the Day
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Hedge funds are paying a price for being too hesitant to buy stocks in the midst of a four-year bull market, according to Barry Ritholtz, FusionIQ’s chief executive officer.
As the CHART OF THE DAY shows, Hedge Fund Research Inc.’s broadest fund index fell out of sync with the Standard & Poor’s 500 Index in 2011 and has yet to recover. The HFRX Global Hedge Fund Index had a 4.8 percent advance for the year through last week, while the S&P 500 was 16 percent higher.