Funds on the Rebound Struggle to Reach High-Water Marks

Hedge fund firms find themselves threatened by redemptions and defections if they can’t recover from a bad year fast enough.

A number of hedge funds that posted sizable losses last year are among the top performers this year, generating double-digit returns.

Even so, several of them have not rebounded enough to reach their high-water marks. In this increasingly less forgiving hedge fund environment, there is enormous pressure on loss-plagued funds to get back to even by the end of the year.

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