Friday, 26 December 2014
Last updated 2 days 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).
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.