Thursday, 23 October 2014
Last updated 1 hour ago
Apr 6 2011 | 11:39am ET
Hedge funds certainly went out like a lamb in March, posting their first down month of the year to close out the third quarter, according to one industry index.
The average hedge fund lost 0.88% last month, according to Hedge Fund Research's HFRX Global Hedge Fund index, cutting its year-to-date return to just 0.4% amidst broad-based losses for hedge fund strategies.
Fundamental value hedge funds had a particularly bad month, dropping 4.48% (down 4.3% year-to-date). March was no picnic for equity hedge or systematic diversified funds, either; they lost an average of 3.13% (down 3.07% YTD) and 1.59% (down 3.49% YTD), respectively.
Multi-region funds fell 1.34% on the month (up 0.84% YTD), market directional funds 1.27% (up 0.64% YTD) and fundamental growth funds 0.54% (up 0.79% YTD).
Only six of the 18 HFRX strategy indices were in the black in March, led by equity-market neutral funds, up 1.55% (2.81% YTD). Special situations funds added an average of 0.42% (3.26% YTD), macro funds 0.38% (1.47% YTD), event-driven funds 0.18% (2.41% YTD), and absolute return and convertible arbitrage funds 0.01% each (0.5% and 3.39% YTD, respectively).
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...