Hedge funds’ glory days of rapid growth and high profits might be over, according to The New York Times.
As the instability in the financial sector spreads, hedge funds have warned that the market is difficult to predict. Hedge funds must spend 5 to 10 percent more than a year ago to borrow from banks; the average hedge fund has lost more than 4 percent this year, according to Hedge Fund Research; and hedge funds are planning to reduce employees’ end-of-year bonuses, according to Glocap, a hedge fund recruiting firm.
“This is probably one of the worst years for performance of hedge funds – it’s been a bloodbath,” Adam Zoia, chief executive of Glocap, told the Times.
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