Hedge funds still have role despite poor 2008: Collins Stewart

Hedge funds should still form part of a well diversified portfolio despite many vehicles suffering po...

Hedge funds should still form part of a well diversified portfolio despite many vehicles suffering poor performance during the financial crisis, Collins Stewart's Richard Hodgetts says. Hodgetts, who manages Collins Stewart Absolute Return Plus, says while there were over 450 hedge funds which failed in 2008, many thousand are still functioning properly. The manager believes while there has been a marked improvement in the performance of global equities this year, world equities and world bonds were still in negative territory for 2009 to the end of April, with hedge funds over 1% positiv...