Thursday, 24 July 2014
Last updated 4 hours ago
Jan 11 2013 | 1:17pm ET
Hedge funds returned 7.32% last year, according to eVestment.
The company's Hedge Fund Aggregate rose 1.47% last month as 71% of the funds it tracks turned in a positive December. For the year, 68% of the index's constituents were up, but few managed to top the broader markets in a year that saw the Standard & Poor's 500 Index rise 16%.
India-focused strategies were as likely as any to do so: The average India hedge fund rose an impressive 20.54% (0.97% in Dec.). Other emerging markets strategies also outperformed. Emerging markets funds in general were up an average of 16.84% (4.73% in Dec.), China funds 14.13% (after an amazing 10.44% surge in December) and Brazil funds 12.84% (2.02% in Dec.).
Mortgage strategies were not far behind Indian ones: The average mortgage hedge fund skyrocketed 18.66% last year (0.75% in Dec.). Healthcare hedge funds added 16.58% (0.99% in Dec.), financials funds 15.59% (2/72% in Dec.), volatility and options funds 12.88% (0.78% in Dec.), credit funds 12.15% (1.29% in Dec.) and small- and micro-cap funds 10.22% (2.1% in Dec.).
Only three strategies lost ground last year: technology, which fell 2.14%, all of it in December, when it lost 3.01%; commodities, which fell 2.09% (down 1.24% in Dec.); and managed futures, which fell 0.71% (up 0.46% in Dec.). In addition, energy and equity market neutral funds posted losses in December, falling 0.83% and 0.03%, respectively. Both were up on the year, 0.92% and 3.04%, respectively.
As usual, the largest hedge funds lagged behind their smaller peers. Hedge funds with more than $1 billion in assets returned an average 6.83% in 2012. Mid-sized funds actually did best on the year, up 7.89%, while small funds, those with less than $250 million, rose an average of 7.28%.
eVestment also reported flows into the industry through November. In the first 11 months of last year, hedge funds took in $36.25 billion, increasing the industry's size to $2.58 trillion. Most of that money went to American or global hedge funds, as investors pulled money from European and Asian strategies. Credit funds also benefitted, taking in $57 billion in new money, while equity strategies saw $20.11 billion in outflows.
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…