Sunday, 28 December 2014
Last updated 1 hour ago
Dec 7 2010 | 1:05am ET
Hedge funds took a hit last month and find themselves well behind the broader markets on the year, according to Lyxor Asset Management's industry benchmarks.
The Lyxor Hedge Fund Index shed 0.78% in November and is up just 3.49% on the year. By contrast, the Standard & Poor's 500 Index is up 7.86% after a mostly flat month.
Not for the first time this year, short-bias hedge funds brought up the rear in November, plummeting 4.53%. The strategy is the only one tracked by Lyxor in double-digits—either up or down—this year, and in the case of short-bias it is down a whopping 21.54%.
Long-term commodity trading advisers also had a tough month, dropping 2.36% (up 7.53% year-to-date). Short-termers didn't do much better, losing 1.96% (down 0.85% YTD). Long/short credit arbitrage funds fell 1.24% on the month (up 9.22% YTD), merger arbitrage 1.06% (up 4.46% YTD), global macro 0.99% (up 3.84% YTD) and equity market neutral 0.63% (up 0.51% YTD).
The winners were led by distressed securities funds, which enjoyed an average return of 1.17% in November (4.72% YTD). No other strategy was up more than 1%, with fixed-income arbitrage registering at 0.78% (9.88% YTD), long-bias at 0.45% (3.38% YTD), convertible and volatility arbitrage at 0.4% (4.21% YTD), and special situations at 0.13% (5.39% YTD).
Meanwhile, the Lipper Hedge Fund Composite Index has taken the opportunity to remind everyone that October was a much, much better month. That index rose 1.8% that month and is up 5.13% through the first 10 months of the year.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.