Hedge Funds Bounce Back

Most recently, well-known hedge fund manager Victor Niederhoffer reportedly has been forced to shutter his flagship Matador fund after suffering subprime whiplash during the summer.

Yet despite all the pain, hedge funds are seeing year-to-date returns of 9.14% and could look to end 2007 not far off of the more than 12% returns posted last year.

Positive market action has not been a boon for all areas of the hedge markets, though. Short-selling strategies, which make bets that an index or particular security will lose value, were battered in September, posting a negative return of 3.14%.