WSJ's Zuckerman: Mutuals To Mimic Hedge Funds
It may be harder now for the small investor to get into hedge funds, but will that dampen their appeal in 2007? CNBC asked Wall Street Journal Reporter Gregory Zuckerman what he expects from hedge fund investments, in the year ahead.
Zuckerman said that overall hedge funds under performed by a couple of percentage points and that any (money managers) were too bearish on the stock market.
Zuckerman says those that 'shorted' the markets did particularly poorly – going down by about 7%. Hedge funds that concentrated on emerging markets did quite well. They were up about 17%.
Zuckerman anticipates that in '07, investors will see mutual funds and ETF’s that mimic hedge funds. Overall, he says these investments will have high fees. He recommends “putting (your) money directly into the hedge fund that has a track record rather than a mutual fund that tries to.... mimic it.”
Gregory Zuckerman's article appears in today's Wall Street Journal.