Friday, 21 November 2014
Last updated 11 hours ago
Apr 4 2011 | 1:01pm ET
Hedge funds made it three-for-three in March to close out the first quarter with gains.
Two industry indices also show that, for the first time in 2011, the average hedge fund had a better month than the Standard & Poor's 500 Index. Still, the average fund is well behind the broader markets for the first quarter.
The Credit Suisse Liquid Alternative Beta Index rose 1.28% last month, while IndexIQ's IQ Hedge Composite Beta Index managed a more modest 0.86%. The former is up 3.08% for the first three months of the year, while the latter is up just 0.93%. By contrast, the S&P 500 rose a microscopic 0.04% in March, but is up almost 6% on the year.
"All four LAB sector indices posted gains as managers profited from a number of diverse strategies which generated positive returns across both equity and credit markets," Jordan Drachman, head of research for alternative beta strategies at Credit Suisse, said. "The LAB Event Driven Liquid Index remains the strongest performing index year-to date, returning 4.39%."
That strategy index rose 1.01% last month, the weakest performance of any LAB index. The strongest was global macro, which added 1.69% (2.03% year-to-date), followed by merger arbitrage at 1.38% (3.74% YTD) and long/short equity at 1.17% (3.58% YTD).
The IndexIQ benchmarks showed emerging markets funds to have been investors' best bet in March with a 2.82% return (down 0.02% YTD). Event-driven funds rose 1.72% (0.9% YTD) and global macro funds 1.12% (1.06% YTD). Long/short equity funds added 0.58% (3.12% YTD).
Fixed-income arbitrage and market neutral funds, on the other hand, took losses last month. The former dropped 1.03% on the month (down 0.4% YTD), while the latter edged down 0.03% (up 0.85% YTD).
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...