News of an alleged insider trading scam at Galleon poses some reputational risk for hedge funds. But their performance is on the mend, data out this week suggests, and this might encourage investors to ignore the gloomy headlines and buy into the sector.
Morningstar has just reported that its 1000 hedge fund index, a top performance benchmark, climbed 7.4 per cent in the third quarter and 17 per cent in the first nine months of the year. Exposure to emerging markets, distressed debt and small caps drove returns higher, said Nadia Papagiannis, a Morningstar analyst specialising in alternative investments.




Lucy Warwick-Ching
Matthew Vincent
Alice Ross
Ellen Kelleher
Steve Lodge
Josephine Cumbo
Tanya Powley
Jonathan Eley