Wednesday, 1 October 2014
Last updated 12 hours ago
Jul 12 2011 | 11:23am ET
Hedge funds lost 1.2% last month amidst remarkably broad-based declines for the industry, the Hennessee Group said yesterday.
The Hennessee Hedge Fund Index closed out the first half with its only two losing months of the year, cutting its 2011 return to 1.45%. Last month, 20 of the 23 strategies tracked by Hennessee lost ground, with only two making gains.
“Hedge funds experienced another difficult month in June. Hedge funds were ‘whipsawed’ as markets sold off sharply before dramatically reversing course with a strong five day rally into quarter end,” Lee Hennessee, managing principal of Hennessee, said. “As the markets fell, hedge funds reduced exposures in order to limit losses and protect capital. When the markets rebounded, hedge funds failed to fully participate in the rally.”
European hedge funds were battered by the ongoing sovereign debt crisis, losing 2.56% on the month (down 1.8% year-to-date). Financial equities and growth funds fared little better, each losing 2.31% in June (up 0.1% and 1.97% YTD, respectively).
Other notable losers included event-driven (down 1.84% in June, up 2.81% YTD), macro (down 1.46%, down 2.98% YTD), distressed (down 1.21%, up 4.41% YTD), emerging markets (down 1.17%, down 0.2% YTD), merger arbitrage (down 0.72%, up 2.64% YTD), convertible arbitrage (down 0.17%, up 2.94% YTD) and market neutral (down 0.05%, up 4.77% YTD) funds.
The only winners were short-biased funds, which took advantage of declining stock markets to add 1.68% on the month (down 4.53% YTD), and technology funds (up 0.36% in June, 5.64% YTD). Greenwich did not report a June figure for its private investments in public equities and private financing index, which is down 7.16% through May.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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