Pop quiz: What is the common theme among the following "best of breed" 2 and 20 (at least) hedge funds, whose YTD performance is presented below?
|Fund||YTD Performance %|
|Brevan Howard Credit||2.95%|
|Brevan Howard Global||2.18%|
|Paulson Advantage Plus||-2.84%|
If you said they have all underperformed the S&P through March 31, which was up 12.03%, you are right. Why? Because only those funds, such as pension and long-only dumb money, or those who are in the worst possible shape, get to benefit from Bernanke's central planning.