Economist Article Weekly – Hedge Fund in 2008

With the recent “credit crisis”, many are losing faith in the markets. Should we start panicking and invest in our good safe bonds and blue-chips as in the past, or should we look back on our former presumptions on the financial black-swan of 2007?

This week extract from my Economist reading is time for pruning article. Good read !

HEDGE funds had a brilliant first half of 2008, outperforming Wall Street by 12 percentage points. Hedge funds had an awful six months, producing their worst return on record.

Depending on your point of view, the same statistics can be used to support both those statements. And the dichotomy shows how confused the image of the industry has become.