Investors Are Running From Hedge Fund Returns

According to Brendan Conway over at Barron’s, last year investors approached hedge funds in the exact wrong way. Hedge funds in markets that performed particular well in 2012 saw their assets under management shrink last year while hedge funds involved in poor markets saw their assets swell. We’ve looked at the danger hedge funds pose to many investor’s returns before, but this information really shows there’s something wrong in the fund market. According to Conway, long/short equity funds saw the largest proportion of outflows of any category last year, while these funds, on average, are up around 20% so far in…