Hedge funds inched up last month, but still badly trail the broader markets with just a month to go in 2010.
The RBC Hedge 250 Index rose 0.25% in November. The benchmark, which tracks nearly 4,000 single-manager funds, is up just 4.05% through the first 11 months of the year; the Standard & Poor's 500 Index has advanced almost twice as much.
As has been true for the year to date, fixed-income arbitrage funds were the big winners during a quiet November. RBC's index for the strategy added 1.87% last month and is up 18.33% on the year, more than twice as much as the next-best strategy.
Convertible arbitrage funds also did well last month, rising 0.74% (4.12% year-to-date). Long/short equity funds returned an average of 0.5% (3.32% YTD) and credit funds 0.48% (8.66% YTD). Multi-strategy funds added 0.24% (5.37% YTD), while equity market-neutral funds used November's 0.2% gain to erase their year-to-date losses; the strategy is now flat through 11 months.
Macro funds were basically flat for the month, rising 0.07% in November (0.32% YTD).
Two strategies went backward in November: Managed futures, which lost 0.72% (up 4.29% YTD), and mergers and special situations, which lost 0.49% (up 6.11% YTD).