Mercer | Why the Economist is wrong about hedge funds

Mercer | Why the Economist is wrong about hedge funds

Investments

Why we believe the economist is wrong about hedge funds

The Economist published an article in its August 1 edition, titled “Fatal Distraction,” arguing that pension schemes are making a mistake in employing hedge funds to manage assets on their behalf: “For the pension schemes that are the hedgies’ latest target, handing over cash makes no sense.” Many of the arguments used in the article are open to debate and we would urge institutional investors to challenge their conclusions.

The chart accompanying the article shows that rolling five-year returns from the hedge fund industry fell from around 20% p.a. in the late 1990s to around 5% p.a. by 2015. In the chart below, in addition to the rolling 5 year hedge fund returns, we have included a line illustrating the level of US equity returns over the same period for comparison.

 Get the full article (PDF)

Thank you for your interest in Mercer’s "Why the economist is wrong about hedge funds" article. If you do not have your pop-up blocker enabled, you will be prompted by your browser to download the report or to view it in a new window. In addition, you will receive an email from Mercer shortly with a link to access the article.

Please fill out your details below to receive the full "Why the economist is wrong about hedge funds" article.
*Required Fields
First name is required
Last name is required
Role is required
Email is required Email is invalid
Company name is required
Country is required

I would like to receive communications about products and offerings from Mercer. I understand that I can unsubscribe at any time. 

By clicking Submit, I agree to the use of my personal information according to the Mercer Privacy Statement. I understand that my personal information may be transferred for processing outside my country of residence, where standards of data protection may be different.

There are some errors processing this form. Please check the fields and try again.

Thank you for your submission.