Wednesday, 23 July 2014
Last updated 1 hour ago
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%.
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…