So far this year, hedge fund managers have failed to beat the S & P 500 , one of the cheapest, easily available investment vehicles for ordinary investors. Hedge funds returned just 5% in the first half of the year after a 0.2% loss in June, with event-driven strategies the biggest laggards, according to data firm HFR. The performance may come as a disappointment as hedge funds often tout star stock pickers and niche strategies to justify their high fees. Hedge funds typically charge a 2% management fee on the total assets under management plus a performance fee of 20% of the fund's profits. Goldman Sachs' prime brokerage data showed hedge funds have been rotating out of tech stocks, especially winning chipmakers over the past few weeks, while pouring into financial stocks and commodities.

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Persons: Hedge, Morgan Stanley's, Bill Meany, Morgan Stanley, Goldman Sachs, Ken Griffin's, Bill Ackman's Pershing, Dan Loeb's, Cliff Asness, AQR Organizations: Citadel, Apex, Equity Locations: Wellington