Wednesday, 20 August 2014
Last updated 19 min 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.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note