Thursday, 25 December 2014
Last updated 1 day ago
Sep 9 2011 | 12:02pm ET
A tough August has hedge funds covered in red this year.
Hedge Fund Research's HFRI Fund Weighted Composite Index fell 2.32% last month, driving the benchmark into negative territory for the year. Eight months through 2011 and the index is down 1.22%.
Stock-heavy hedge funds led the decline, with equity hedge strategies losing an average of 4.11% (down 3.42% year-to-date), while the Standard & Poor's 500 Index lost almost 6%. Energy and basic materials funds shed 4.11% (down 5.37% YTD), as well, and technology and healthcare funds posted a loss of 3.37% (up 2.09% YTD). Quantitative directional funds dropped 1.73% (down 0.61% YTD) and equity market neutral funds 0.94% (up 0.06% YTD).
Emerging market funds did even worse, thanks to pitiful performance in Asia ex-Japan and Russia and Eastern Europe. The average emerging markets fund fell 4.7% on the month (down 4.55% YTD). But Russia and Eastern Europe funds plummeted an average of 10.3% in August (down 6.93% YTD) and Asia ex-Japan funds fell 6.22% (down 7.75% YTD).
Event-driven funds didn't have it much better, losing an average of 3.71% (down 0.92% YTD). Distressed and restructuring funds were especially hard-hit, falling 4.31% (down 0.48% YTD), with merger arbitrage funds shedding 1.08% (up 0.68% YTD).
Relative value funds lost 1.18% in August (up 1.92% YTD). Corporate fixed-income funds fell an average of 2.75% (up 1.59% YTD), while convertible arbitrage funds fell 2.39% (down 2.62% YTD) and yield alternatives funds 2.11% (up 3.34% YTD).
The month's few bright spots—and they were few enough—were provided by funds betting against the stock market and macro funds. Short-bias funds soared 6.94% last month to push themselves into the black for the year at 2.52%. The average macro fund gained 0.12% (down 0.3% YTD), while the average systematic diversified fund rose 0.94% (up 0.73% YTD).
Funds of hedge funds fell 2.07% on the month (down 1.92% YTD).
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.