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Traders work on the floor at the New York Stock Exchange.
Traders work on the floor at the New York Stock Exchange.
(BRENDAN McDERMID/REUTERS)

Hedge funds irked by stock market benchmark comparisons

Frustrated with frequent comparisons to broad stock market indexes, hedge funds are pushing back against a benchmarking practice they say unfairly assesses their returns.

Because hedge funds – now commonly referred to as “alternative funds” – often buy and sell stocks, their performance is routinely compared to that of the S&P/TSX composite index or the S&P 500, depending on the fund’s home base and the composition of its investments.