Hedge funds produced returns of about 5 percent last year, according to Hedge Fund Research, compared with the 10 percent rise of the Standard & Poor’s 500-stock index. (Bryan R. Smith/AFP/Getty Images)Long considered the titans of Wall Street, hedge fund managers have long thrived under a simple premise: They are smarter than the average investor and can produce bigger profits. “The hedge fund industry has started to collapse on itself,” said Charles Geisst, a Wall Street historian at Manhattan College in New York. Last year, Richard Perry, considered one of the hedge fund industry’s most successful investors, shut the doors to his fund, Perry Capital, after steep losses. His fund lost $3 billion last year, according to hedge fund investor LCH Investments.

Source: Washington Post May 29, 2017 21:11 UTC