Hedge Funds Stay Hot, Relatively

Jul 16 2007 | 12:09pm ET

Hedge fund returns cooled in June, according to the Credit Suisse Index Co., but were still in positive territory in spite of a treacherous month in the markets.
 
The Credit Suisse/Tremont Hedge Fund Index rose 0.78% last month and is now up 8.7% on the year. By contrast, the Standard & Poor’s 500 was battered by “sharply rising yields since the beginning of June and speculation that sub-prime mortgages will continue their decline,” Oliver Schupp, CS Index Co. president, said. Indeed, the broad-market index fell 1.66% last month; its year-to-date return sits at 6.96%.

Indeed, all 13 of CS’ sub-strategies and sub-sub-strategies posted positive returns last month save one: Risk arbitrage was flat on the month (up 4.91% YTD). But none had quite the month that managed futures did, as that strategy index soared 3.03% (7.38% YTD) “as managers generally profited from fixed-income and currency plays, while commodities contributed positively to the sector’s performance,” Schupp noted.

Other strong June performances were turned in by emerging markets (1.83%, 9.29% YTD), global macro (1.22%, 7.95% YTD) and dedicated short bias (1.2%, -2.15% YTD).

For the year, event-driven strategies remain the top-performers, with event-driven multi-strategy up 12.42% year to date after a 0.61% return in June and all event-driven funds covered by CS/Tremont up 10.8% in 2007 after rising 0.73% last month.

The Credit Suisse/Tremont Investable Hedge Fund Index was also in the black last month, rising 0.28%, though its year-to-date performance lags the S&P500 at 6.36%.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

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

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.