Wednesday, 27 May 2015
Last updated 1 hour ago
Dec 9 2011 | 11:04am ET
Hedge funds reversed course in November, giving back a significant chunk of the gains won in October and leaving themselves facing a likely down 2011.
The Greenwich Global Hedge Fund Index fell 1.1% last month and is now down 4.1% on the year. The benchmark had turned in a 2.4% return in October, giving rise to hopes that the industry had turned a corner.
Long/short equity funds were hardest hit on the month, especially growth funds. Overall, long/short funds lost 2.4% (down 8% year-to-date), with growth funds down 3.6% (down 10% YTD). Short-biased funds, on the other hand, rose 1% to return to the black at 0.4% on the year.
Only a handful of strategies or substrategies managed to avoid the red in November. Non-convertible and fixed-income arbitrage funds jumped 1.9% (down 0.3% YTD), while convertible funds fell 0.3% (down 0.4% YTD) and fixed-income funds 1.2% (up 2.2% YTD). Long/short credit funds added 0.4% (4.5% YTD), merger arbitrage and futures funds added 0.2% (up 2.1% and down 2.7% YTD, respectively) and macro funds are flat (down 0.4% YTD).
On the other side, distressed securities fell 2.2% (down 3.4% YTD), opportunistic funds 2.1% (down 7.4% YTD), value funds 1.9% (down 7.3% YTD) and multi-strategy funds 1.3% (down 3.7% YTD).
Emerging markets funds also did extremely badly, falling 4.5% (down 13% YTD). Emerging markets in the Americas were the primary victim, falling 6.6% (down 10.3% YTD), but those in Europe and Asia didn't do much better and are actually doing much worse for the year: The former fell 4.8% (down 19.1% YTD) and the latter 4.6% (down 15.7% YTD). Among developed markets, Americas funds were flat (down 0.8% YTD), European funds fell 1.1% (down 5.6% YTD) and Asia funds fell 2.5% (down 7.3% YTD).
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by partcipating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…