Wednesday, 22 October 2014
Last updated 14 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.
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...