Wednesday, 1 October 2014
Last updated 15 hours ago
Nov 3 2011 | 10:08am ET
Hedge funds ended a brutal two-month losing streak in October, but missed out on the spectacular stock market rally.
The average hedge fund added 0.81%, Hedge Fund Research's HFRX Global Hedge Fund Index shows. That's a welcome respite from August and September, when the index fell 3.47% and 2.99%, respectively. But it came amidst an impressive turnaround for the Standard & Poor's 500 Index, which soared 11% in October, erasing its year-to-date losses.
Hedge funds have a long way to go over the next two months before they can say that. The HFRX index remains down 7.68% on the year.
Equity hedge funds, in particular, must be kicking themselves over the lost opportunity. The HFRX Equity Hedge Index rose 1.36% in October—but remains down 17.27% on the year. Fundamental value funds managed a 1.23% return, but are still off 22.84% year-to-date.
Distressed restructuring funds have the best month, adding 3.06% (down 4.98% YTD). Event-driven and special situations funds also did relatively well, rising 2.11% (down 3.43% YTD) and 2.03% (down 2.29% YTD), respectively.
Multi-strategy relative value funds rose 1.4% to become the only strategy tracked by the HFRX suite in the black year-to-date at 1.29%. Merger arbitrage funds rose 1.28% (down 1.89% YTD) and relative value arbitrage funds 1.16% (down 2.99% YTD).
Other strategies extended their losses for the year in October. Systematic diversified commodity trading advisors fell into the red with a 4.84% loss (down 3.95% YTD), while macro funds and other CTAs merely extended them, dropping 1.99% (down 4.9% YTD). Convertible arbitrage funds also lost ground, shedding 0.55% (down 2.31% 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 McKitish of Peddie School's 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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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