Last fall, Citi’s Steven Englander warned last October that hedge funds tracking economic trends and global markets like stocks, currencies and commodities were tanking.They never recovered.
Of the seven plays tracked by the Index, only the “event-driven” strategy, which involves bets on stuff like corporate mergers, did more poorly, falling 12.5%.
The S&P, of course, ended flat, which means investors would have been better off investing in Mr. Toad’s Wild stock market.
Still, investors like pension funds appear unwilling to abandon neither hedge funds nor the global macro strategy.
“We believe that the pension move into hedge funds, which has been gradually picking up the last four years, continues in 2012,” said Philip Vasan, global head of Credit Suisse Group AG’s prime brokerage, which provides services for hedge- fund clients.