Neil and MD Hindon - Low Volatility describes the strategy of the fund (i.e. they are tailored to perform well in periods of low volatilty). Markets have experienced high levels of volatility recently hence the negative performance. High Volatilty funds should have actually performed very well (although note they are not mentioned in this article)!

Jon, Channel Islands, UK,

Not surprised hedge funds are on the verge of blowing up. Warren Buffett had this to say in an interview with CNBC last weeek:

CNBC: How do we see the end of this-of this explosion in hedge fund mania?
BUFFETT: Over time there will be a disillusionment when the-and incidentally, it won’t be disastrous or anything of the sort. There’ll be-there’ll be the occasional blowups here and there. But over time, when people find out that it’s not the holy grail, you know, the money will flow elsewhere. You know, people will-people always go through the rearview mirror, what’s been popular and has worked recently, and this will be like all the rest.

Boom2Bust.com, Chicago, USA

Just how long are governments going to drag this out for, at increasing risk to the wider economy ?

By now all investors, whether personal or corporate, have had time to exit any investments that have made bad investment decisions.

It's time for governments to clear out the dead wood, by stopping the funding - the relaxation of security requirements means that governments and hence their populations, are becoming more exposed to lower quality assets pledged in exchange for these emergency funds.

John, London, UK

You have to enjoy the names though - 'low volatility' - imagine what's happened to the high volatility ones! 'Absolute return' - where not absolutely everything will be return, and the very best 'Go capital', where your capital just goes...

MDHinton, Sieradz, Poland

"the Drake Low Volatility fund and the Drake Absolute Return, both of which lost almost a sixth of their value last year."

Low Volatility? What could they have meant?

Neil McF, Southampton, Engalnd

"Blackmailing" with pension-funds is the standard answer.
There are other ways to ensure an orderly transition of pension-funds.

Peter Vernunft, Berlin, Germany

maybe pension funds shouldnt be putting money in entities that take 10x leverage... maybe expanding into 'alternatives' was a lapse in judgement.. fortunately it represents no more than about 10% of capital

Harvey, London, UK

Why do people depend on and trust others with their money ?

Sort your own pension out and you can only blame yourself. Its not that difficult to buy long term assets such as land, property, precious metals, diamonds, rare wine.. etc.

financial advisors, hedge fund managers, brokers..... they are only interested in your money and only care about their pockets, not yours.

what do you expect... honesty ?

Mark, London,

Yes Mike, instead of damning those who made bad investments, we should damn everyone.

Dominic, Manchester, UK

This is Greenspan's legacy as a result from cutting the interest rate to a silly 1%, post 9/11. A spectacular success for Al Qaeda...

cww, suffolk UK,

Yes Paul, by all means "let e'm go bust" and damn the pension funds and other people who will depend on them for their future.

Mike, Redruth, Cornwall

Let 'em go bust. They are parasites on the economy.

Paul, Coventry,