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 performance comparison between hedge funds and the S&P 500 this year?

What are the main reasons for the underperformance of hedge funds according to the Goldman Sachs report?

How have hedge funds adjusted their investment strategies in response to market conditions?

What specific stocks or deals were mentioned as problematic for hedge funds in the report?

What does the report suggest about the future outlook for hedge funds in 2015?