Wednesday, 23 July 2014
Last updated 11 hours ago
Jun 12 2007 | 10:38am ET
Hedge funds are on pace for their best year since 2003, as the Greenwich Global Hedge Fund Index rose 2.18% last month to reach 6.84% year-to-date.
But that’s not the only parallel with four years ago, when the Greenwich index rose 18.55%. Then as now, hedge funds trailed the broader markets, the Standard & Poor’s 500 jumped an impressive 26.38% in 2003; this year, the S&P500 is up 8.77% after rising 3.49% in May.
“Hedge funds are off to their strongest start since 2003, when the index was up 7.14% through May,” Greenwich Alternative Investments General Manager Ben Rossman said. “All 18 strategies, with the exception of short sellers, are on track for double-digit returns in ’07.”
Which is not entirely true: Greenwich’s short-selling subindex is on track for double-digit returns of the negative kind, as funds employing the strategy continue to be shelled by the booming equity markets. Short-selling funds covered by Greenwich fell 1.61% last month and are down 4.65% year-to-date.
Meanwhile, those strategies that swim with, rather than against, the current are doing very well, thank you. Aggressive growth funds are closely tracking the S&P 500, rising 3.44% in May (8.71% YTD), and the other non-short-selling members of Greenwich’s long/short equity group posted relatively big months, as well: opportunistic funds were up 2.61% (8.09% YTD) and value funds rose 2.46% (7.96% YTD).
Funds investing in emerging markets, where the equities boom is even more pronounced than in the U.S., continue to pace hedge funds in 2007; up 3.6% last month, the strategy has returned 10.53% this year and is the only Greenwich strategy beating the S&P 500 YTD.
Other strong performers in May included futures (2.62%, 3.37% YTD) and merger arbitrage (2.36%, 7.78% YTD). Year-to-date, top performers behind emerging markets include special situations (1.78%, 8.65% YTD), event-driven (1.92%, 8.26% YTD) and multi-strategy (1.99%, 8.13% YTD).
Investable hedge funds tracked by Greenwich rose 1.95% (6.05% YTD).
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…