Hedge Funds: Headed for Worst Year Ever

Poor Performance, Frustrated Investors

Hedge funds are experiencing one of their worst years on record, leaving investors disappointed with their performance.

Specifically, equity hedge funds with $12 trillion in assets lost an average of 8% in the first five months of 2022, according to data group HFR.

Staggering Losses

• Last week alone, funds lost $432 billion on short bets in the US and Europe.
• Long-short hedge funds have deleveraged by 15-20% since January.
• Global macro quantitative funds lost between 15-25% from August 5th.