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Rekenthaler Report

From the Archives: 3 Lessons From Hedge Funds' Rise and (Partial) Fall

The ups and downs each inform.

Mentioned: , ,

Happy New Year! This column was originally published on May 20, 2016.

Dog Days
Hedge funds have never looked worse. Their reputation was sullied in 2008, when the average hedge fund dropped half as far as the U.S. stock market and the aggressive ones fared much worse. They then lagged during the recovery, underperforming the average balanced mutual fund for 22 out of 28 calendar quarters. Most recently, many were caught holding Valeant Pharmaceuticals.

John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.