Hedge Funds Up 0.4% In November, 6.4% In '12

Dec 14 2012 | 10:46am ET

Hedge funds weathered an up-and-down November to manage a small gain, the Barclay Hedge Fund Index shows.

The average hedge fund rose 0.4% last month, according to the benchmark, which is up 6.36% on the year—about half the performance of the Standard & Poor's 500 Index.

"In spite of an early month sell-off driven by fiscal cliff fears followed by a mid-month rally fueled by encouraging economic data, hedge funds were able to get through the tumult with a small profit in November," BarclayHedge founder Sol Waksman said.

European equity hedge funds led the way, with a 1.54% gain in November. Merger arbitrage funds rose 1.17%, event-driven funds 0.83% and fixed-income arbitrage funds 0.75%. On the year, European equity funds and fixed-income arbitrage funds are among the best performers, up 8.55% and 8.47%, respectively, behind only healthcare and biotechnology (12.93%) and distressed securities (10%).

On the other side of the ledger, equity short-bias funds suffered another loser month, dropping 2.34%. The strategy is the only one tracked by BarclayHedge to be down for the year, a negative 19.34%. Other losing strategies in November were technology, down 0.43%, and global macro, down 0.31%,

Funds of hedge funds matched hedge funds' performance in November and are up an average of 3.4% on the year.

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