Hedge Funds have had their worst year since the Financial Crisis. Performance is down for a variety of reasons and this was before the October bout of market volatility. What is interesting, though, is that the traditional pitch of such funds is their lack of correlation to markets which should mean they are well placed to perform well in downward markets. In reality, Goldman Sachs point out the top 5 stock holdings of discretionary Hedge Funds are Microsoft, Amazon, Facebook, Google and Alibaba.....hmmmm.....
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Hedge Fund Performance Continues to Dive
Senior investment professionals at hedge funds are projected to take a hit to their pay of more 10 per cent this year as the industry struggles through one of its worst periods since the financial crisis. Average pay for senior analysts — generally the top investment-side role below portfolio manager — will fall from $651,500 in 2017 to $589,000 this year, according to CompIQ, a compensation advisory firm. The hit is to bonuses, which are set to fall from about $467,000 to $384,000, while base pay will rise from $185,000 to $205,000.