Saturday, 26 July 2014
Last updated 22 hours ago
Sep 19 2012 | 12:45pm ET
August's rising tide lifted almost all hedge fund strategies, according to BarclayHedge.
Sixteen of BarclayHedge's 18 indices were in the black last month, a month which saw the broader Barclay Hedge Fund Index rise 1.09% (4.2% year-to-date) and the Standard & Poor's 500 Index add almost 2%. Unsurprisingly, equity long-bias funds did best, nearly matching the S&P500 with a 1.95% return (5.73% YTD), followed by event-driven funds at 1.91%, distressed securities funds at 1.67% and healthcare and biotechnology 1.42% (10.76% YTD).
"Equity prices moved mostly higher in August in spite of economic data calling for a continued slowdown in growth," Sol Waksman, BarclayHedge's founder, said. "Investors appeared to be betting on further stimulus from central banks, and recent actions from the [Federal Reserve Board] and [European Central Bank] have proven them right."
The two losing strategies were Pacific Rim equities, down 0.27%, and equity short-bias, down 3.26%. The latter is also the only strategy tracked by Barclay Hedge that is down on the year—and it is down a lot, 12.42%.
"It's been a volatile year for hedge funds trading the short side of the market, with a 9.21% loss in January, a 10.04% gain in May, and a lot of chop in between those two extremes," Waksman said.
Funds of hedge funds edged up 0.67% last month, according to the Barclay Hedge index, and are up 2.42% this year.
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…