Rising Tide Lifts Hedge Fund, Indices Say

Jun 15 2007 | 11:25am ET

The booming equities market and a strengthening U.S. economy boosted hedge fund last month, according to two indices released today. The Credit Suisse/Tremont Hedge Fund Index rose 2.31% in May to reach 7.86% year-to-date, and the RBC Hedge 250 Index added 1.7% to hit 6.35% for 2007. Of course, the strong economy also lifted the broader markets, as the Standard & Poor’s 500 rose 3.49% on the month (8.77% YTD).

“The U.S. economy rebounded in May as job creation was double the April figures, unemployment held steady, consumer confidence rebounded from an eight-month low, and the manufacturing sector grew at its fastest rate in over a year,” Oliver Schupp, president of the Credit Suisse Index Co., said. “Overall, this market environment has been favorable for the majority of hedge fund strategies. Managed futures, in particular, were up 5.13% in May as managers generally profited from the strong performance of medium-term CTAs on the back of strong M&A activity, a positive economic outlook and a strong stock market.”

The strong month for managed futures was its second in a row; the strategy is now up 4.22% year-to-date after April 4.02% return and May’s 5.13%. Other strategies, however, have not needed a turnaround this year.

Event-driven continues to be the strategy to beat, rising 3.24% in May to hit an even 10% for the year, according to Credit Suisse. In particular, event-driven multi-strategy funds are booming, jumping another 4.31% last month to top all comers at 11.73% year-to-date.

Long/short equities were also boosted by the strong stock market, rising 2.31% in May (9.25% YTD). Dedicated short-bias, by contrast, took another bath, dropping another 2.2%—after last month’s 2.74% drop—and is down 3.31% year-to-date.

The Credit Suisse/Tremont Investable Hedge Fund Index was up 2.03% last month (6.06% YTD).


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note