Why Hedge Funds Are Getting Clobbered In 2012 at Golden Networking's Hedge Funds Leaders Forum 2012

Aug. 29, 2012 - PRLog -- (August 20, 2012, New York) Forbes’ Nathan Vardi reports that the hedge fund crowd is licking its wounds heading into the Labor Day weekend after getting clobbered by the market. As hedge funds look toward the homestretch of 2012 they will have to pull off a sector-wide miracle to stop 2012 from being one of the worst years their rich industry has ever experienced. Where will they get the insights to reach calmer waters by the end of the year? The answer is Hedge Funds Leaders Forum 2012, "Getting Ready to Manage $5 Trillion by 2016".

The numbers are truly terrible. Bank of America Merrill Lynch’s investible hedge fund composite index shows hedge funds are up 1.85% so far in 2012. That means investors in many hedge funds are paying big fees for the luxury of getting creamed by the U.S. stock market, which has returned 13.8% in 2012, at least as measured by the Standard & Poor’s 500 index. Goldman Sachs has put out a report showing that the average hedge fund is up 4.6% in 2012 and that only 11% of the hedge funds it tracks have beaten an ordinary S&P 500 index fund.

The big question is whether investors will overwhelmingly lose faith in hedge funds and start heading for the exits in a big way. So far they have only been creeping toward the door, although there are signs investor patience might be coming to an end. Reuters recently reported that a hedge fund administrator’s redemption indicator hit its second-highest level of the year in August and that big investors, like Citigroup’s private bank, in John Paulson’s prominent but struggling hedge funds have requested to redeem hundreds of millions of dollars. Man Group, the world’s biggest publicly-traded hedge fund, has seen its stock drop by 40% this year after its assets under management fell by almost a third.

Investors have stuck with hedge funds through rough times before and have shown they are willing to forgive one bad year. But 2011 was also a loser for most hedge funds. It was one of the hedge fund industry’s worst years ever, with the average hedge fund falling 5% while the S&P 500 returned 2%. Two bad years in a row might be tougher for some investors to accept.

On September 25 in New York, October 9 in Chicago and December 12 in London, hundreds of the most important players in alternative investments will gather for all-star agendas at Hedge Funds Leaders Forum 2012, "Getting Ready to Manage $5 Trillion by 2016"  A virtual who’s who will soon follow as one legendary manager after another will take the stage. Billions of investable assets will be represented by influential local and international investors who will listen with rapt attention as star managers and analysts discuss and debate the biggest issues facing the industry today.

Hedge Funds Leaders Forum 2012, "Getting Ready to Manage $5 Trillion by 2016" will provide attendees in New York, Chicago and London with the most up-to-date review of where this ever-changing industry stands and how regulatory and alpha expectation s will impact it. Recognized managers, investors, experts, regulators, and strategists will return to Hedge Funds Leaders Forum 2012 to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.
Hedge Funds Leaders Forum 2012 is produced by Golden Networking , the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net.