As Bull Market Is Longest In History, Hedge Funds & Leverage Lag

As the S&P 500 passed the benchmark of being the longest bull market in history, running past the 3,453-day mark last Wednesday, there is, once again, a notable performance laggard: hedge funds.

With the stock market benchmark up near 300% since bottoming in March 2009, the bull market hedge funds love to second guess just grew stronger. And hedge funds, judging by the latest leverage statistics in a Goldman Sachs report, keep on doubting the bull, hedging their bets and underperforming.

With the HFRI Asset Weighted hedge fund index up just 1.40% year to date – and by Goldman’s measure of 830 hedge fund representing $2.3 trillion in assets down 1% on the...