Hedge funds: hedge trimming

The average hedge fund lost 0.75% in the first half of the year, according to Hedge Fund Research. For investors paying stiff fees for consistent positive returns, that’s a disappointment. In reality, though, plenty of funds track markets to some extent. Against the S&P 500, say, hedge funds didn’t do badly. The worst first-half performance for hedge funds since at least 1990 could encourage some investors to pull money out. It doesn’t help that HFR’s “average” fund reflects the performance both...