It is clearly not over.
Just when you thought they were out, they pulled investors back in. According to recent data from HFR, hedge funds had a great month in January, beating equities and delivering significant positive returns. Just a month ago, the media were asking if hedge fund managers still had it after performance in 2013 did not match the broad market index. The industry, according to these experts, was in big trouble. Wrong again! Comparing investments that go long and short the market to investments that only go long is like, well, comparing apples to oranges. Simply put, if managers are hedging, then they should not beat the market in an up year. […]