TrimTabs data on hedge fund performance in December added in this updateBOSTON ( TheStreet) -- Hedge fund managers tend to outperform during stock-market rebounds when individual investors are playing it safe. After a miserable performance during a volatile 2011, that outperformance is still missing as hedge funds pared risk and haven't participated in this year's rally. Hedge funds, which cater to wealthy investors by chasing higher returns for bigger fees, did not live up to high investor expectations this year. Hennessee Group, an adviser to hedge fund investors, said its own hedge fund index fell 4.3% in 2011, compared with a flat finish for the S&P 500. Hennessee Group's hedge fund index perked up in January, rising 2.5%. However, that trailed a gain of more than 4% for the S&P 500.
|Bill Ackman, Pershing Square|