Thursday, 31 July 2014
Last updated 17 hours ago
Jan 10 2011 | 1:45pm ET
Hedge funds had a big December—the second-best month of the year—but the broader markets have a better month and, in the end, a better year.
The Hennessee Hedge Fund Index rose 3.04% last month, ending the year up 10.05%. But the Standard & Poor’s 500 Index soared more than 6% in December and more than 15% on the year.
Still, it was a good year for hedge funds: Only one strategy wilted in the face of the market rally (short-bias, which lost 13.18% on the year after shedding another 4.6% in December). Arbitrage and event-driven funds returned an average of 12.35% in 2010, while global/macro funds added 9.32% and long/short equity funds added 9.11%.
Among sub-strategies, event-driven funds took pride of place in 2010, rising an average of 16.2% (4.39% in December). Distressed funds followed at 14.76% (3.14% in Dec.) with emerging markets funds at 13.65% (2.83% in Dec.)
Latin America funds added 13.35% (1.04% in Dec.), financials funds 13.3% (5.94% in Dec.), technology funds 12.68% (2.85% in Dec.), fixed-income funds 12.59% (2.21% in Dec.), international funds 12.08% (2.64% in Dec.), high-yield funds 12.02% (1.45% in Dec.) and multiple arbitrage funds 11.41% (2.4% in Dec.). Value funds returned 11.37% on the year (2.95% in Dec.), growth funds 10.94% (4.26% in Dec.), convertible arbitrage funds 10.44% (1.36% in Dec.), telecomm and media funds 8.33% (0.53% in Dec.), macro funds 7.96% (3.27% in Dec.), merger arbitrage 7.17% (2.55% in Dec.) and Asia-Pacific funds 6.16% (2.08% in Dec.).
Private investment in public equities and private financing funds were up 6.05% last year (1.28% in Dec.), opportunistic funds 5.61% (3% in Dec.), healthcare and biotechnology 5.07% (4.57% in Dec.), market neutral funds 5.06% (1% in Dec.) and Europe funds 4.24% (3.22% in Dec.).
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…