Friday, 25 July 2014
Last updated 51 min ago
Jan 3 2012 | 2:14pm ET
Hedge funds suffered their worst year ever in 2008. It didn't take them long to put up their second-worst year.
The average hedge fund fell 4.1% last year, their second-worst on record, according to Eurekahedge. The Eurekahedge Hedge Fund Index fell 0.2% in December.
Most of the losses were suffered in the second half, Eureka said, and hit smaller hedge funds the hardest. The Mizuho-Eurekahedge Top-100 Index actually rose 2% in 2011, a year that saw the Standard & Poor's 500 Index finish almost perfectly flat.
Fixed-income hedge funds did best on the year, returning 1.5%, while arbitrage funds added 0.6%. Regionally, Latin America was the place to be, with funds focused there rising 2%. North American funds, by contrast, lost 0.8%.
Despite the ugly returns, other indicators of the hedge fund industry's health were good for 2011. Hedge funds took in $67 billion in new money, $1 billion more than in a much more successful 2010, increasing the industry's size to $1.72 trillion. And last year saw the second-highest number of new launches in history.
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…