Hedge Funds Continue To Underperform

While some famed hedge fund managers managed to generate big gains for investors, the average hedge fund returned just 6.2% in 2012, according to Hedge Fund Research. With all three equity indexes up between 7% and 13%, that batting average could be called mediocre at best.
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Despite the meager returns, investors aren't fleeing. Hedge funds still managed $1.8 trillion of assets as of Sept. 30, 2012, according to research firm BarclayHedge.