Hedge Funds Lag On Short Problems

According to a new report from Goldman Sachs Group Inc (NYSE:GS) hedge funds are not doing well in 2013. Overall just 5% of equity hedge funds are actually managing to beat the market. According to the analysis hedge fund long bets are actually doing well. It's the shorts that are killing returns.

The report, which deals with returns from the start of the year through to August 9, finds that average equity hedge funds have returned just over 4% to its investors for the year so far. That number pales in comparison to the more than 16% increase in...