Archive for January, 2009|Monthly archive page

Hedge Funds Lost 18.3% in 2008

From NYT:

The hedge fund industry as a whole lost 18.3 percent in 2008, according to data released Thursday from Hedge Fund Research, as the financial markets reeled from the exploding credit crisis.

This is actually surprisingly good given everything that happened. Obviously people won’t be happy per se with these returns but at the same time I think most people were expecting much worse.

As the first commenter points out, however, the data is self reported and is only for a self selected subset of funds. It is not clear if, for example, a fund which performed poorly this year could/would just drop out of this report. This would in effect serve as a lightweight version of survivorship bias and make things look better than they really were.

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Lehman PE Survives

From WSJ:

The deal calls for the Lehman estate to spin out the unit’s most recent fund, a $3.3 billion vehicle raised in 2007. It will be owned by the firm’s current management, which is led by chief Charlie Ayers. It is unclear how much the management is paying.

Bold mine. It seemsĀ a little strange to me that this wouldn’t be public.