Apr 18, 2007

Hedge funds were down an average of 1.5 per cent in the 2008 first quarter, their worst quarterly performance in almost four years, as a rebound in February failed to cover losses in January and March, according to new data from Morningstar (MORN.O). The data provider, which tabulates average performance from some 8,700 hedge funds and funds of hedge funds, said equity-focused hedge funds fared the worst in the quarter, particularly emerging markets funds and US small cap funds, which lost 8.58 per cent and 8.7 per cent respectively on average.

Citibank booked upward of $13.9 billion in write-downs stemming from its risk-taking ahead of the credit crisis and $3.1 billion in extra consumer-credit costs. And investors cheered what they hope if finally an end to the misery.