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

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.