Hedge Fund Winners and Losers Emerge as Year Ends on Better Note

This was the year to ridicule hedge funds. Pension funds, politicians, Warren Buffett, even hedge fund managers themselves -- they all had something to say about the disappointing performance, high fees and market saturation.

Well-known managers from Ray Dalio to John Paulson saw performance on their funds range from flat to double-digit losses, while some distressed-debt investors like Jason Mudrick benefited from the rally in commodities prices. Strategies focused on macro trends and equity hedges -- which have seen returns crimped by swollen stock-market valuations and ultra-low interest rates -- produced the worst returns.

But as the year draws to an end, the industry’s gotten an unexpected pick-me-up. The ripple across markets from the surprise victory of U.S. President-elect Donald Trump bolstered returns -- reversing the fortunes for some -- and may prove to be a boon going forward. With his policies expected to increase interest rates, produce a wider dispersion in earnings across industries and trigger more merger activity, hedge funds may soon be put back to work.

Link: Hedge Fund Winners and Losers Emerge as Year Ends on Better Note
Link: Hedge Fund Market Wizards: How Winning Traders Win