Hedge Funds Tighten Belts Against Lowering Expectations For 2006 Returns

In a new survey released by the ICBI, fewer than 10% of those who responded expected average hedge fund returns to be more than 9.5% in 2006, a sharp decline from the 12 15% many had expected in April following

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In a new survey released by the ICBI, fewer than 10% of those who responded expected average hedge fund returns to be more than 9.5% in 2006, a sharp decline from the 12-15% many had expected in April following a strong first quarter.

Concerns of inflation increases, rising interest rates and slowing economies worldwide have left hedge funds feeling more pessimistic that they did after seeing Q1 returns.

Many funds felt the blow of falling stock prices amid volatile markets and have been left reeling as a result.

While some managers remain hopeful of an upswing in returns, many who were surveyed said they think it is unlikely because a significant amount of money is tied up in long/short equity.

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