Equity Hedge Funds Must ‘Put Up or Shut Up’ With Market Volatility

  • Firms can exploit less stock correlation, more dispersion
  • Marshall Wace’s fund is said to rise 4.1%; Glenview is down 7%
Photographer: Michael Nagle/Bloomberg
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It’s make-or-break time for equity hedge funds after years of poor performance.

Stock-pickers have lamented that calm markets and not enough disparity in equity prices have hindered their ability to make money. They haven’t beaten the stock market annually in almost a decade. Industry titans like John Griffin and Alan Fournier have closed down.