Saturday, 26 July 2014
Last updated 22 hours ago
Apr 19 2011 | 11:51am ET
Another pair of hedge fund indices confirms the findings of most of their peers: March was not a month for the record books.
The average hedge fund fell 0.32% last month, according to the RBC Hedge 250 Index. That shoulder-shrugging conclusion is drawn from the highly-mixed performance of the hedge fund strategies tracked by RBC Capital Markets.
The best performer on the month, fixed-income arbitrage, added just 0.49% in March (4.47% year-to-date). Just two other strategies were in the black on the month, with convertible arbitrage funds adding an average of 0.39% (6.19% YTD) and event-driven credit funds 0.31% (3.55% YTD).
Of the more numerous losers, only managed futures funds suffered a big drawdown, shedding an average of 2.35% in March (down 0.61% YTD). All other strategies saw more modest losses: macro funds dropped 0.69% (down 0.98% YTD), equity market neutral funds 0.31% (up 0.22% YTD), equity long/short funds 0.15% (up 1.74% YTD), multi-strategy funds 0.1% (up 1.81% YTD) and mergers and special situations funds 0.05% (up 2.68% YTD).
Those ho-hum numbers were backed up by French business school Edhec's own hedge fund indices. Convertible arbitrage funds rose 0.23% on the month to cement its status as the best-performing strategy of the first quarter at 3.7%. Other quarterly returns were markedly less robust: equity market neutral funds added 0.91%, long/short equity funds 0.21% and event-driven funds 0.17%.
As in the RBC index, managed futures funds were the worst performers on the month, with Edhec's commodity trading adviser global strategy down 1.67% on the month and 0.57% on the year. Funds of hedge funds dropped 0.11% on the quarter.
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…