Wednesday, 23 July 2014
Last updated 14 hours ago
Jul 10 2007 | 11:10am ET
For all the doom-and-gloom headlines about declining equities markets and hedge funds burned by the growing sub-prime debacle, hedge funds did quite well in June. The Hennessee Hedge Fund Index rose 0.88% and is up 8.71% year-to-date, the Hennessee Group said today.
Short-biased, telecom and media, Asia-Pacific and Latin America funds buoyed the index, while the declining equities market gave the Standard and Poor’s 500 a beating. It fell 1.66% last month (6.96% YTD). Fully half of the more than 1,000 managers covered by the Hennessee indices have topped the S&P500 in the first half of 2007.
“Despite significant losses incurred by several funds focusing on mortgage-backed securities, it was generally a very good month for hedge funds,” Hennessee Group managing principal E. Lee Hennessee said. “Of note, long/short equity funds actually benefited from the collapse in sub-prime mortgages via their short exposure to lenders and ABX indices.”
The Hennessee Long/Short Equity Index rode its sub-prime gains to buck the falling long market, adding 0.84% in June (8.43% YTD). Short-biased funds, of course, simply rode the market to only their second up month of the year, rising 2.85%, tops among Hennessee-tracked strategies. But the months-long market rally has taken its toll as the Short-Biased Index remains mired in the red, down some 4.01% this year.
Telecom and media funds also enjoyed a strong June, rising 2.36% (8.87%). Among regional strategies, Latin America and Asia-Pacific remain the top two strategies in the Hennessee indices, rising 0.46% (16.22% YTD) and 2.58% (11.14% YTD), respectively.
In spite of the market’s decline, only two strategies found themselves in negative territory for June: distressed funds, down 0.32% (up 8.9% YTD), and merger arbitrage funds, down 0.2% (up 9.78% YTD).
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…