Tuesday, 23 September 2014
Last updated 7 hours ago
Aug 4 2011 | 12:56pm ET
The second half of 2011 opened in pretty much the same way the first half closed: with most hedge funds in the red.
The average hedge fund fell a further 0.11% in July, extending its 2011 loss to 2.22%, according to Hedge Fund Research's HFRX Global Hedge Fund Index. Equity hedge and event-driven strategies and sub-strategies were especially hard-hit, while macro and relative value strategies offered something of a bright spot under the hot summer sun.
Macro funds, in particular, blossomed in July. The HFRX Macro Index added 1.27% while its systematic diversified benchmark soared 4.99%. Unfortunately, neither return was able to erase either strategy's considerable first-half losses; the former ended July down 0.9% for the year and the latter 1.73%.
Relative-value arbitrage funds were July's other winner, adding 0.26% (up 1.65% year-to-date). Multi-strategy relative-value arbitrage funds did even better, rising 0.58% (2.52% YTD), with only convertible arbitrage raining on the relative value parade with a 0.75% decline (up 0.88% YTD).
There was no good news anywhere else. Merger arbitrage funds dropped 0.85% on the month (up 0.23% YTD), equity hedge funds 0.84% (down 9.1% YTD), fundamental growth funds 0.71% (down 0.69% YTD) and event-driven funds 0.66% (up 0.77% YTD). Special situations funds lost 0.58% in July (up 1.65% YTD), equity market neutral funds 0.51% (up 2.2% YTD), fundamental value funds 0.44% (down 10.35% YTD) and distressed securities funds 0.42% (up 0.26% YTD).
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 McKitich, CIO of Petty 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…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.