Hedge Funds Closing Shop After Bruising Performances

This year a wide variety of hedge funds have closed shop, mostly for one reason, poor performance. The strategy that has been particularly punished this year was short biased. Credit Suisse Short Bias Index is down -17.36% through August of this year, HFR is showing less abysmal returns, ad the HFRX EH: Short Bias Index is down 7.6% in the same period. Perhaps due to the apparent inability of long/short equity to perform as well together, a number of hedge funds have started offering long-only products.  In that league, tiger cubs have been particularly active, Caotue Management, Tiger Global and Hound…