Friday, 1 August 2014
Last updated 14 hours ago
May 15 2007 | 2:25pm ET
Hedge funds did well in April, according to the Credit Suisse/Tremont Hedge Fund Index, but only about half as well as the broader equity markets. The CS/Tremont index rose 2.02% last month and has gained 5.43% year-to-date, but the Standard & Poor’s 500 has closed the gap, soaring 4.43% in April to reach 5.1% in 2007. Investable funds rose 1.68% on the month (4.02% YTD).
“Overall, this market environment has been favorable for the majority of hedge fund strategies,” Oliver Schupp, president of Credit Suisse Index Co., said. “Managed futures, in particular, was up 4.02% in April as managers generally profited from currencies as the U.S. dollar and Japanese yen weakened and the euro strengthened.”
The strategy may have had a good month—it was even better among investable funds, which rose 4.44%—but it has still been a pretty dismal year, with managed futures remaining down 0.87% year-to-date (investable managed futures funds are down 1.71% year-to-date).
Unsurprisingly, with global equity markets on a tear, funds with big short portfolios suffered in April. Dedicated short-bias funds tumbled 2.74% in April (down 1.14% YTD); investable short funds did even worse (down 3.33% on the month and 2.34% YTD). But all other strategies tracked by CS were in positive territory.
Other than managed futures, the best performers included long/short equity (up 2.9% in April, 6.79% YTD), emerging markets (2.24%, 5.51% YTD) and risk arbitrage (2.15%, 4.87% YTD). Event-driven strategies remain the best performers in 2007 (1.52%, 6.55% YTD), especially event-driven multi-strategy, which added 1.44% in April and is up a robust 7.12% this year.
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…