Hedge funds lost an average 3 percent in the first quarter of 2008, after gaining 1.6 percent in the fourth quarter of last year, according to Morningstar Inc. data reported in Pensions & Investments magazine. PI story here. 
  That also applies to the hedge "fund of funds" favored by big institutional investors like the Pennsylvania state workers' pension system (SERS). 
  Betting against U.S. stocks was one of the few successful strategies for hedge managers, Morningstar added, as Asian stock markets also headed south. 
  Hedgies did lose less than the S&P 500, down 10 percent for the same period. But investors could more profitably have put the money in bonds: the Lehman Bros. Aggregate Bond Index outperformed most hedge fund categories, P&I noted.
  If it's any consolation, hedge and private equity managers should get a 10 percent haircut on their own compensation this year, P&I added, citing data from hedge adviser Johnson Consultants. Story here. 
  We're not predicting they'll be refunding any fees.