HFRI: Hedge Funds Down 1.59% In March

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).

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…