Sunday, 23 November 2014
Last updated 1 day ago
Sep 6 2011 | 4:00am ET
Hedge funds took a big hit in August, battered by tremendous market volatility and declining stocks, according to Credit Suisse's suite of hedge fund replication indices.
The average hedge fund lost 3.36% last month, the Credit Suisse Liquid Alternative Beta Index shows. The benchmark is now down 0.98% on the year.
"The [Standard & Poor's] downgrade of the U.S. credit rating caused a broad market sell-off that negatively impacted the distressed equity sector," Credit Suisse's Jordan Drachman said. That hit event-driven funds particularly hard; the Credit Suisse Event Driven Liquid Index dropped 4.62% in August, erasing its year-to-date gains and leaving it down 1.95% on the year.
Long/short equity hedge funds dropped an average of 3.68% (down 0.38% year-to-date) and global strategies funds 2.69% (down 0.64% YTD). Merger arbitrage funds lost 0.77% (up 2.89% YTD), while managed futures funds managed a 0.35% increase (down 1.99% YTD).
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...