FYI: Hedge funds entered last year coming off their eighth-straight year of trailing U.S. stocks (as measured by the S&P 500 Index) by significant margins. And for the 10-year period ending 2017, one that included the worst bear market in the post-Depression era, the HFRX Global Hedge Fund Index produced a negative return (-0.4%), underperforming every single major equity and bond asset class.
Unfortunately, the losing streak for hedge funds continued into a ninth year, as the HFRX Global Hedge Fund Index returned just 6.0% in 2017, underperforming the S&P 500 Index by 15.8 percentage points. The following table shows the returns last year for various equity and fixed-income indexes.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-21
