Hedge fund managers are proving their worth

NEWS ANALYSIS

Annual Barclays Equity-Gilt study claims hedge fund returns could not be replicated passively

Hedge fund managers genuinely add value and are worth their fees, according to the latest Barclays Gilt and Equity study. The study, which examines a different asset class each year, looked at hedge funds for 2005 to determine their value to investors. It chose hedge funds due to increased interest from pension products and looked at whether managers truly earn their fees and if similar performance can be achieved passively. Report authors, including Tim Bond of Barclays, said they were surprised to find that hedge funds typically meet their objectives and that the returns they produce a...