Tuesday, 23 September 2014
Last updated 2 hours ago
Aug 19 2011 | 4:47am ET
Hedge funds will need a rally to avoid another down month this summer, according to Hedge Fund Research.
While the average hedge fund has ably outperformed the broader markets during the dizzying swings of August, it looks like it will extend its losses for the year. The HFRX Global Hedge Fund Index was down 2.7% on the month through Aug. 15, bringing its year-to-date loss to 4.86%.
Most of the damage has been done among equity strategies, unsurprisingly. Equity hedge funds are down 4.53% through the middle of the month (down 13.22% year-to-date). Fundamental growth funds have had an even grimmer eighth month, down 5.34% (down 6% YTD), while fundamental value funds fell 4.93% (down 14.66% YTD).
Distressed securities funds lost an average of 3.48% during the first two weeks of the month (down 3.23% YTD). Both event-driven and relative value arbitrage funds fell 2.98% (down 2.23% and 1.38% YTD, respectively). Special situations funds lost 2.82% (down 1.22% YTD) and multi-strategy relative-value arbitrage funds 1.96% (up 0.51% YTD). Convertible arbitrage funds lost an average of 1.91% (down 1.05% YTD) and merger arbitrage funds 1.07% (down 0.84% YTD).
The only bright spots on the month—and they are dim enough—were macro strategies and systematic diversified funds. The former gained 0.29% (down 0.62% YTD) and the latter 0.88% (down 0.86% YTD) during the first half of August.
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.