Finansavisen writes today about Peter Warrens miserable performance on his hedge fund.

Last year the Norwegian stock market rose 38 percent and 31 percent so far this year. Warren’s hedge fund rose 3,9 percent last year and 1,9 percent.

Warren replies that he thinks that most people do not understand the purpose of the hedge fund, and the strategies used. Most of the people that complain are people that have been sold in from so called independent financial advisors.

Anyway it shows that there were a lot of talk about hedge funds while the stock market was going down in 2001 and the following years. Since they could make profits in a declining market, but for the average investor is not so hot when the market is going up.