Saturday, 29 November 2014
Last updated 19 hours ago
Jun 10 2011 | 2:06am ET
Hedge funds fell—along with global stock markets—during a volatile May, with directional trading funds hit particularly hard, according to Greenwich Alternative Investments.
The firms' Greenwich Global Hedge Fund Index fell 1.2% last month, slightly more than the Standard & Poor's 500 Index. But hedge funds haven't had the year that the S&P500 has; the former are up only 1.8% through May, according to the Greenwich benchmark, while the latter is up 7.8%.
Losses were widespread, both among strategies and geographically. Emerging markets funds lost 2% on the month (up 0.4% year-to-date), but funds focused on developed markets did little better, dropping 1.2% (up 1.9% YTD). Greenwich's market neutral group was flat on the month (up 2.9% YTD), but five of its nine strategy and sub-strategy indices were in the red.
Directional trading strategies, on the other hand, had anything but a mixed month: Theirs was downright bad. The average such fund lost 2.8% in May (down 0.8% YTD), with futures funds dropping 3.3% (down 0.7% YTD) and macro funds 1.7% (down 0.5% YTD).
Long/short equity funds lost an average of 1% on the month (up 2.5% YTD). Long/short credit was a rare bright spot in the data, adding 0.8% (5% YTD), trailing only short-biased funds (up 1.1% in May, down 3.2% YTD) for the month.
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...