Nov 24/15 – Hedge fund underperformance – an ominous sign?

Every time I turn around another hedge fund is blowing up or closing. I know the industry has experienced massive growth and some weeding out is to be expected, but the recent downturn has been unusually brutal.

Have a look at this great chart from Goldman Sachs that shows the performance of hedge funds versus the S&P 500 over the past fifteen years.