Jolt for investors on hedge funds

Investors in hedge funds have been warned they face disappointing returns, according to reports issued by two international industry giants last week.

Investors in hedge funds have been warned they face disappointing returns, according to reports issued by two international industry giants last week.

Consulting firm Watson Wyatt has warned of capacity constraints in the hedge fund industry.

It told clients that a “lot of investors in hedge funds are going to be disappointed'‘.

Watson Wyatt estimated that less than 10 per cent of current hedge fund managers were “highly skilled'‘.

It questioned how much ...