Reuters reports that it’s been a good first month of the year for hedge funds as last year’s losers are turning into this year’s winners following the reversal of the late-2011 decline in early-2012. Even John Paulson seems to be doing well lately, his Advantage Plus Fund already up 5 percent this year after tumbling more than 50 percent last year.
This graphic from the Economist’s Daily Chart depicts how trying it’s been recently, particularly last year when many investors were probably wondering why they were paying big fees to hedge fund managers who underperformed a low cost stock index fund.
Interestingly, according to the Reuters story, after plunging 42 percent last year, the $116 million Henderson European Absolute Return fund claims the top spot in performance this year with a gain of 14 percent through late-January. This compares to a gain of almost 12 percent for the Iacono Research model portfolio so far in 2012 after a decline of 5 percent last year, the same as the average hedge fund performance in 2011.