A Year Later, and Hedge Fund IRR Remains Pathetic

One year ago AR Magazine published an article I wrote which revealed how poorly hedge fund investors had done in aggregate. Today, AR revisited the topic. Over the past 12 months the hedge fund industry has continued to deliver steadily mediocre results (although there are certainly some bright spots) and investors have continued to plow money into the biggest funds. 2011 will be the ninth consecutive year that hedge funds have failed to outperform a simple blend of 60% equities and 40% bonds. It’s convenient timing for my book, The Hedge Fund Mirage.