Wednesday, 20 August 2014
Last updated 8 hours ago
Jun 8 2012 | 1:02pm ET
Hedge funds weren't spared the wrath of the markets in May, according to an industry benchmark.
Hedge Fund Research's HFRI Fund Weighted Composite Index lost 1.59% last month. That's much less than the 6.27% the Standard & Poor's 500 Index lost, but left the average hedge fund up just 2.54% on the year.
There were few winners in HFRI's roster last month: five, to be exact. Short-bias funds, obviously, led the way with a 7.03% jump (down 3.3% year-to-date), followed by systematic diversified funds (4.09% in May, 2.92% YTD). Macro funds added 1.71% (1.85% YTD) and fixed-income asset-backed relative value funds 0.56% (6.24% YTD). And market defensive funds of funds were rewarded for their conservatism with a 0.82% return (1.24% YTD).
Otherwise, it was a bloodbath: Equity hedge funds lost 4.07% (up 1.77% YTD), event-driven funds 1.35% (up 3.13% YTD) and relative value funds 1.25% (up 3.08%). Emerging markets funds were especially hard-hit, losing 5.42% on average (up 0.79% YTD), with Russian and Eastern European funds plummeting 11.35% (down 4.45% YTD), Asia ex-Japan funds falling 5.75% (up 0.46% YTD) and Latin American funds shedding 5.57% (up 1.59% YTD).
It was no picnic for other substrategies, either: Energy and basic materials funds lost 7.76% (down 5.74% YTD), yield alternatives funds 4.88% (up 1.12% YTD) and quantitative directional funds 3.91% (up 2.26% YTD), to name a few.
Funds of funds also suffered a bleak month, except for the market defensive variety, losing 1.98% in May (up 1.5% YTD).
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the 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. Read more…
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 Editor's Note