Tuesday, 25 November 2014
Last updated 4 hours ago
Jan 9 2013 | 10:42am ET
Hedge funds added 7.3% in 2012, according to eVestment, and even managed to outperform the S&P 500 TR in Q4.
And while eVestment's numbers are higher than those of most other indices (the HFRX Global Hedge Fund Index was up 3.51%, the Credit Suisse Liquid Alternative Beta Index was up 3.22% and the Eurekahedge Hedge Fund Index was up 5.63% in 2012), hedge funds still trailed the S&P 500's full-year gains of 16%.
Almost all strategies tracked by the research firm ended 2012 in the black. The best performers were mortgage strategies, up 18.66% on the year (0.75% in December); long/short equities, up 9.57% on the year (2.24% in December); and relative-value credit, up 9.23% on the year (0.36% in December).
Event/driven distressed strategies were up 9.07% on the year (1.84% in December); convertible arbitrage strategies were up 7.02% on the year (0.36% in December); and multi-strategy funds were up 5.84% on the year (2.25% in December).
Reporting lower, but still positive, returns were macro strategies (up 3.24% on the year, 1.04% in December) and market neutral (up 3.04% on the year, down 0.03% in December).
The only losing strategy in 2012 was managed futures, down 0.71% on the year (but up 0.46% in December).
In regional terms, emerging markets funds triumphed, gaining 16.84% on the year to developed markets' 6.53%, led by Indian funds (up 20.54% on the year); Chinese funds (up 14.13% on the year), and Brazilian funds (up 12.84% on the year).
Credit fund assets under management (at $796.93 billion), surpassed equity fund AUM (at $788.91 billion) for the first time on record, according to eVestment.
“For all the negative press hedge funds received in 2012, the year was broadly positive,” said eVestment VP Peter Laurelli in a statement. “Investor flows were firmly positive with nearly $40 billion of inflows through November, almost doubling last year’s full year total. Many strategies returned nearly 10% in a year that was widely expected to be tumultuous, and did so in the face of a rising burden from regulation and oversight.”
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…
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...