Last year was among the worst ever in the history of hedge funds, with $210 billion in losses during the third quarter alone, 693 funds closed through Sept. 30 and an average 16% decline through November.
Financial advisers will likely be drawn to the allure of exchange traded funds in 2009, thanks to an anticipated rise in open-end mutual fund expenses, according to industry experts.
Historically low interest rates, coupled with a torrent of new cash from investors, are forcing many mutual fund companies to close the doors on their Treasury money market funds.
Although most funds performed dismally last year, a Vanguard fund and its exchange traded fund share class bucked the trend with spectacular results, returning more than 50%.
Wash sale rules prohibit an investor from recognizing a loss for tax purposes if securities are sold and "substantially identical" securities are purchased within 31 days.
Union Bancaire Privée is threatening to pull billions of dollars of assets from some of the largest U.S. hedge funds, according to a spokesman for the Geneva bank.
Hedge funds suffered another body blow in December when, according to one index, the S&P 500 stock index outperformed the alternative class strategies.
American Century Investments expects to open an office in Hong Kong in the next few months.
Real estate investment trusts wrapped up 2008 with negative returns, including dividends, of 37.3% on average.
Mutual funds and discretionary assets that comply with Shariah, or Islamic law, fell to $65 billion at the end of the third quarter.
SIFMA has hired Leon J. Bijou as managing director and associate general counsel in a bid to expand its municipal bond expertise.
The latest data, released today by the National Association of Realtors in Washington, shows the Pending Home Sales Index, which tracks contracts signed, fell to its lowest level since the trade group began tracking the stats in 2001.
Commercial real estate is heading into its worst year since the industry's crash of 1991-92 and likely won't see a significant rebound until 2011 at the earliest, according to industry experts.
investors will likely continue to yank assets from mutual funds, more funds will close, and fund launches will come to a crawl this year, according to analysts.
Although political sentiment is warming to environmentally sensitive policies, the green movement may not be ready for a boom in investing in 2009.
