Wednesday, 1 April 2015
Last updated 2 hours ago
Jun 13 2007 | 10:56am ET
Another pair of hedge fund indices confirm that you would have been better off investing in a passive index fund this year, so far. Better off, that is, unless your hedge fund bets are in market-directional funds.
Hedge Fund Research’s HFRX Global Hedge Fund Index rose 2.55% last month—up 6.46% year-to-date—buoyed by the performance of its market-directional components, which rose 4.03% last month, more than doubling its year-to-date returns, which now stand at 7.79%. By contrast, the Standard & Poor’s 500 rose 3.49% in May and is up 8.77% in 2007.
Equity long/short funds were far and away the best performers, according to Dow Jones Indexes. Five of its six Dow Jones Hedge Fund Strategy Benchmarks were up last month, but none as dramatically as equity long/short, which rose 3.65% on the month and is up 10.84% on the year. No other strategy was up as much as 2%, though merger arbitrage, with its 1.94% return in May, is still up a very respectable 9.53% in 2007.
Macro funds also had a strong month, according to HFR, rising 3.78% in May (7.62%). Event-driven remains the top-performing strategy year-to-date at 10.09% after a 3.15% May jump. Equity hedge also did well, adding 3.02% (7.62% YTD). None of the HFRX indices were in negative ground last month, though some were close—equity-market neutral, a bad place to be when the equity markets are soaring, adding just six basis points (5.66% YTD)—and one, volatility, remains down 2.37% year-to-date in spite of a positive 1.04% return in May.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…