, Columnist
Hedge Fund Returns Should Be All Over the Place
The wide dispersion in returns shows the funds are working as designed.
Relaxed. Crispin Odey, founder of Odey Asset Management LLP.
Photographer: Harry Borden/Getty Images
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The annual results are starting to roll in from some of the world’s most prominent hedge funds, and a yawning gap is emerging between the winners and the losers. That’s exactly what should happen.
The average decline last year of 6.7 percent, according to Hedge Fund Research’s Global Hedge Fund Index, is an indictment of the asset class’s claim to be able to deliver stellar performance in return for outsized fees no matter what the market backdrop. But the aggregate figure masks a wide dispersion in results.