The Hedge Fund Way: Pay More, Get Less

Another month, another marker that hedge funds are having an annus horribilis: With returns of 7.1 percent so far this year, the industry is badly trailing the broader market, where the Standard & Poor’s 500-stock index has gained 29.1 percent. If the pace continues, 2013 will be the worst year for the asset class, compared with stocks, in nearly a decade. Hedge fund manager Stanley Druckenmiller called the results a “tragedy” on Bloomberg TV on Nov. 22.