A Tough Market For Hedge Funds

Business Week reports:

Chicago's Hedge Fund Research reported in December that through Sept. 30, a record 484 funds, more than 6% of the total, had shut down in 2005. Figures for the fourth quarter aren't available yet, but they're sure to be even worse, says Minneapolis hedge-fund manager Andrew Redleaf. He describes the situation as a "recession for hedge funds," and says things are even bleaker than the data show, because the numbers are based on unaudited results reported to industry groups. Some ne'er-do-well funds might overstate their results, while others might not report anything.

A long term sideways or bear market should help hedge funds.Consider this,the S&P 500 hasn't made a new high since March of 2000 at 1552.Today we are farther than 15% away from the high.