Weak Results Dim Hedge Funds’ Luster

With the fall from grace of hedge funds such as Archeus Capital, whose holdings have fallen to just $682 million from $3 billion in 2005, and the recent meltdown of Amaranth Advisors, it looks like the blush may be coming off the rose.

In another words, hedge funds, investments for institutions like pension funds and endowments and the wealthy, have hit a rough patch.

“In the hedge fund world, everybody is looking at their portfolio and asking themselves: ‘Do I have another Amaranth in my portfolio?’” Tim Cook, the president of Kailas Capital, an investor in hedge funds, told The New York Times.