HFN: Market Rally Outpaces Hedge Funds

Jun 7 2007 | 12:14pm ET

Hedge funds were in a familiar position in May: well in positive ground, but also well behind the broader markets.

HedgeFund.net’s equal-weighted HFN Hedge Fund Aggregate Average rose 2.41% last month to reach 6.88% year-to-date, according to early estimates. But the continuing equity-market rally pushed the Standard & Poor’s 500 up another 3.49% to 8.77% year-to-date.

One way to beat the rally, it seems, is to go with it: The HFN Long Only Average rose 5.98% in May. The long/short subindex also performed relatively well, rising 2.76% on the month (8.09% YTD).

Other than just going with the market, emerging markets and energy funds were the strategies to be in last month, with the former adding 3.31% in May and the latter 3.11%. Those strategies are also the best-performing year-to-date, at 10.43% and 10.98%, respectively.

Among the remaining strategies, macro (2.81%, 5.2% YTD), special situations (2.74%, 9.35%), equity hedge (2.72%, 8.24% YTD) and CTA/managed futures (2.02%, 2.7% YTD) posted strong months. In addition, event-driven funds remained above the S&P500, with a 1.95% return in May and 9.15% year-to-date.

Regionally, Asia and Latin America funds had a remarkable May, rising 5.36% and 5.06%, respectively. Latin America funds are up an average of 14.8% in 2007, according to HFN, with Asia funds up an average of 10.16%.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note