Fund Performance in 2007

From the HFSD 2007 Hedge Fund Compensation Survey:

“Respondents generally said their fund performance was solid. Over 50% said their fund had good to excellent performance. This was also supported by Morningstar reporting solid hedge fund performance for the first half of 2007; maintaining an edge over the S&P 500 Index. Paradoxically, the favorable industry performance may have generated some of the negative feelings gathered in the compensation section of the survey. When the fund is doing well, team members expect to share in that upside. A negative reaction can result from either a poorly designed bonus and incentive plan, or the absence of one altogether.”