Saturday, 25 October 2014
Last updated 1 day ago
Nov 5 2012 | 1:19pm ET
Hedge funds suffered a through a tough October, with only event-driven funds providing a glimmer of good news, according to an industry replication index.
The Credit Suisse Liquid Alternative Beta Index dropped 0.64% last month. After a year of trailing the Standard & Poor's 500 Index, the benchmark managed to beat it in October, but only by missing out on the broader market's full decline.
The index is up only 2.31% on the year, and in October, event-driven "was the sole contributor to performance, finishing up 0.94% for the month," Jordan Drachman, head of alternative beta strategies at Credit Suisse said. Drachman also noted that, with a return of 9.12% on the year, event-driven "continues to be the highest-performing strategy" in 2012.
The other four strategies tracked by the LAB indices were in the red on the month. Managed futures funds fell 2.41% (down 8.84% year-to-date), and long/short funds lost 2.01% (up 2.94% YTD). Merger arbitrage funds dropped 1.28% in October (down 4.18% YTD) and global strategies shed 0.86% (down 0.53% YTD).
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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