Paul Tudor Jones. David Einhorns. Daniel Loeb. These billionaire star investors recently have reported miserable growth on the funds that they are managing. Now the key questions that is eagerly awaiting to be answered is: “Why should I give you so abundant a fee for so poorly a return?” Svea Herbst-Bayliss from the Reuters have reported this issue today.
Hedge funds have little to brag about halfway through 2012, with some of the industry’s biggest names reporting only small gains and trailing the benchmark U.S. stock index by a wide margin.
Paul Tudor Jones’ flagship fund is up 1.59 percent through the third week in June and David Einhorn’s biggest portfolio is up 3.7 percent in the first half, while Daniel Loeb told investors that his largest fund rose 3.9 percent during the first six months of 2012, investors in the funds said.
Compared with a year ago when many hedge funds were losing money, these returns might be something to cheer, especially since they beat the benchmark HFRX Global Index‘s 1.22 percent gain.