Tuesday, 30 September 2014
Last updated 2 hours ago
Jul 6 2010 | 12:35pm ET
Hedge funds seemed to wilt a little in the June heat, one industry index shows.
The Credit Suisse Liquid Alternative Beta Index shed 0.4% last month. The decline, following a 2.64% loss in May, leaves the index down 0.12% on the year.
Despite dipping into the red for the first half, Jordan Drachman, head of research for alternative beta strategies, said there was room for optimism.
“Despite overall negative performance, three out of four LAB sector indices posted gains as managers utilized a number of diverse strategies which generated positive returns across currency and credit markets,” Drachman explained.
None more so than merger arbitrage: The strategy soared 2.15% last month, more than doubling its year-to-date return to 4.04%. Event-driven and global macro funds also posted positive returns, edging up 0.41% (1.64% year-to-date) and 0.14% (down 0.54% YTD), respectively.
So why the negative June?
“Long/short equity appeared to be the largest detractor last month as managers in the space continued to suffer from equity market volatility,” Drachman said. Indeed, the strategy shed 1.94% on the month, pushing it and the overall index into negative territory, down 1.21% through the first half.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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