Thursday, 31 July 2014
Last updated 7 hours ago
Sep 6 2012 | 11:48am ET
Hedge funds continue to badly trail the broader markets, failing once again in August to participate in a stock-market rally.
The average hedge fund rose 0.56% last month, the Dow Jones Credit Suisse Core Index shows. But the Standard & Poor's 500 Index rose almost 2% on the month and is up almost 12% on the year. By contrast, the Dow Jones benchmark is up just 2.02% this year, a gain recorded almost entirely in the last two months.
Returns were mixed across strategies, with long/short equity funds managing a 1.66% return in August (down 0.38% year-to-date) and event-driven hedge funds up 1.04% (up 2% YTD). Global macro hedge funds added 0.88% on the month (4.74% YTD), fixed-income arbitrage funds 0.57% (1.47% YTD) and convertible arbitrage funds 0.25% (5.58% YTD, the best of the lot).
Managed futures funds, on the other hand, took a big hit, dropping 2.01% last month (up 0.84% YTD). Emerging markets funds edged down, falling 0.15% (up 0.26% YTD).
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…