Thursday, 24 July 2014
Last updated 6 hours ago
May 11 2011 | 12:09pm ET
Hedge funds returned 1.4% in the first quarter, but jumped 1.69% in the first month of the second, according to Greenwich Alternative Investments.
The Greenwich Global Hedge Fund Index more than doubled its year-to-date return last month to 3.25%. Still, the benchmark badly trailed the Standard & Poor's 500 Index, which returned almost 3% in April alone and is up about 9% on the year.
With two exceptions, all of Greenwich AI's strategy and substrategy indices were in the black last month, led by directional trading funds—and especially futures funds. The former rose 3.05% last month (2.46% year-to-date) and the latter 3.66% (2.94% YTD).
Multi-strategy event-driven funds also did well, adding 2.08% to reach 4.82% on the year, the best mark of any strategy or substrategy tracked by Greenwich AI.
"Hedge funds continued to move higher in April driven by strength in equities and commodities," Clint Binkley, senior vice president at Greenwich AI, said. "Nearly all hedge fund strategies are at new highs for the year and continue to be successful in a market dominated by headline risk and uncertainty."
Two that are not are other arbitrage funds (excluding convertible and fixed-income), which fell 1.17% on the month and are down 0.77% on the year. Short-biased funds also wilted amidst the market rally, dropping a further 1% to fall to 4.15% down.
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…