Why Its Been a Tough Year for Hedge Fund Managers

The video discusses the underperformance of hedge funds, highlighting a Goldman Sachs report that examines the reasons behind this trend. It explores both macroeconomic and microeconomic factors affecting hedge funds, such as economic conditions and specific stock picks like the AbbVie and Shire deal. The report suggests that the challenging environment for hedge funds may persist into 2015, with narrow dispersions and low volatility. Additionally, the video analyzes hedge fund investments in sectors like consumer discretionary and energy, which have not performed well.

What is the average performance of hedge funds compared to the S&P 500 this year?

• Hedge funds are up 13%, S&P 500 is down 1%

• Hedge funds are up 1%, S&P 500 is up 11%

• Hedge funds are down 1%, S&P 500 is up 13%

• Both hedge funds and S&P 500 are up 11%

What is one macro reason for hedge funds' difficulties?

• Increasing interest rates

• Narrow dispersions between stock performances

• Decreasing consumer spending

• High volatility in the market

Which two stocks were mentioned as having negatively impacted hedge fund portfolios?

• Apple and Microsoft

• Google and Facebook

• Tesla and Amazon

• AbbVie and Shire

What is the predicted economic condition for hedge funds in 2015?

• Economic contraction and high volatility

• High volatility and wide dispersions

• Economic expansion and low volatility

• Stagnant economy and high volatility

Which sectors have significant hedge fund ownership but have underperformed?

• Utilities and Real Estate

• Financials and Industrials

• Technology and Healthcare

• Consumer Discretionary and Energy