Hedge Funds Are Back To Underperforming The Markets

Hedge funds performed exceptionally well during the pandemic, and investors rewarded them with inflows. However, things are changing now, as March has brought a marked turnaround for the industry and a return to the disappointing returns it has struggled with for years.

Q4 2020 hedge fund letters, conferences and more

Disappointing performance in March

Morgan Stanley strategist Katy Haber and her team studied the hedge fund industry and provided their findings in a recent report. They found that most strategies are posting losses for March so far. Through the middle of the month, hedge funds had been posting small gains, even as the major stock indices posted strong gains that peaked around March 15. Since mid-March, hedge funds have captured...