Not All Hedge Funds Totally Worthless


Our friends over at MoneyBeat have a question: Are any hedge fund strategies of any kind anywhere producing any alpha at all? The answer is yes, albeit not much and by not many.

Data from BlackRock shows that alpha – profits due to a manager’s skill, rather than because of overall market moves – was pretty hard to come by in the first half of this year in the hedge fund industry….

But in so-called event-driven funds, which bet on events such as corporate M&A, spin-offs or bankruptcies, things are at least going in the right direction. Those funds on average made a healthy 2.6% of alpha, more than double the 1.1% in the first half of last year.

So Are Any Hedge Fund Strategies Producing Alpha? [WSJ MoneyBeat blog]