Saturday, 26 July 2014
Last updated 1 day ago
Jan 11 2011 | 5:58am ET
Compared with last year's numbers—and this year's broader markets—hedge funds had a fairly pedestrian 2010, according to a pair of industry indices.
Hedge Fund Research's HFRI Fund Weighted Composite Index rose 10.42% last year while HedgeFund Intelligence's AR Composite Index added 9.12%. Things looked much worse for both before December when the former rose 3.15% and the latter 3.7%; both still badly trailed the Standard & Poor's 500, which rose more than 6% in December and more than 15% on the year.
Energy and basic materials hedge funds were the best performers tracked by the HFRI indices, rising 15.98% on the year (4.71% in Dec.). Relative value funds did well across the board, rising an average of 11.81% (1.41% in Dec.), paced by fixed-income asset-backed funds (14.32%, 0.98% in Dec.), multi-strategy relative value funds (13.93%, 1.95% in Dec.) and yield alternatives funds (13.32%, 1.87% in Dec.).
Emerging markets funds added an average of 11.8% on the year (2.77% in Dec.), event-driven funds 11.67% (2.68% in Dec.), equity hedge funds 10.4% (3.46% in Dec.) and macro funds 8.41% (3.73% in Dec.). Of all the HRFI strategies and substrategies, only short-bias funds suffered both a losing month and a losing year, declining 8.51% in December to end the year down 21.3%.
Funds of hedge funds added 5.64% on the year, according to HFR.
HFI's index was led by event-driven funds at 13.86% for the full year (3.14% in Dec.). Distressed funds rose 12.08% (1.21% in Dec.), mortgage-backed securities funds 11.9% (1.91% in Dec.), credit funds 11.68% (1.09% in Dec.) and convertible and equity arbitrage funds 10.16% (0.57% 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…