Hedge funds losing lustre after years of underperformance

Hedge funds were once investment darlings. In the years before the global financial crisis of 2008 they flourished, supported by investors eager to benefit from their investing smarts. Times have changed. Today, an asset exodus is taking place from the hedge fund industry. An investment director at a sovereign wealth fund in North Asia succinctly summed up the situation: “It is rare now to hear asset owners adding hedge fund allocation. What we hear is a lot of asset owners eval…