Friday, 24 October 2014
Last updated 3 hours ago
Jan 25 2011 | 1:39pm ET
A late-year surge helped push the hedge fund industry up double-digits last year—as well as to the point of near-full recovery from the financial crisis.
The Morningstar 1000 Hedge Fund index jumped 4.04% in December. The benchmark finished the year up 10.36%.
"Hedge funds finished strongly in 2010, and most have now fully recuperated from 2008's hangover," Morningstar's Nadia Papagiannis said.
Distressed securities funds had the strongest year, rising 24.47% (3.53% in December). The next-best strategy was corporate actions, which jumped 19.4% (4.58% in Dec.). Other strong performers included developed Asia stock funds, which rose 14.58% (5.52% in Dec.), U.S. equity funds (13.41%, 4.12% in Dec.), emerging markets equity funds (13.28%, 3.72% in Dec.), U.S. small-cap equity funds (12.82%, 6.18% in Dec.) and global trend funds (12.28%, 7.35% in Dec.).
The only losing strategy in 2010 was short equity, which shed 2.03% (up 5.42% in Dec.) in a year in which the Standard & Poor's 500 Index advanced more than 15%.
The Morningstar Hedge Fund of Funds index returned 4.13% on the year (2.93% in Dec.).
Morningstar also said that, through November, hedge funds had taken in some $2.7 billion in net inflows, thanks to a whopping $3.8 billion in inflows in November.
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…
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