The collapse of the U.S. credit bubble in 2007 created challenges for all managers, whether they ran a traditional long-only strategy or a hedge fund. Within the hedge fund community, there were high-profile losses at some and equally high-profile gains at others. But the averages reveal something much less dramatic: decent returns in a tough environment.

Despite concerns about hedge funds as a threat to the financial system, they were neither the main cause of the credit crisis, nor its main victim. Hedge funds are the explosion that didn’t happen: the dog that didn’t bark. Bob Jaeger, Senior Market Strategist for BNY Mellon Asset Management, reviews 2007 performance, with some insight as to how hedge funds were relatively unscathed in a difficult market. For more information or a hard copy please contact, please contact David Zigas at 617 248-6202.

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular MAM product.