Friday, 19 December 2014
Last updated 7 min ago
Feb 14 2013 | 11:28am ET
Hedge funds jumped 2.84% to open 2013, according to one industry benchmark.
The Barclay Hedge Fund Index rode a big rise in stocks in January—the Standard & Poor's 500 Index added more than 5% on the month—and was buoyed by strong economic indicators all around.
"Fiscal cliff fears receded, European banks strengthened, China avoided a hard landing, Japan stimulated its economy and global equities rallied," BarclayHedge chief Sol Waksman explained. "Economic sentiment continues to improve and investors have moved to a 'risk on' mode as fears of a euro collapse diminish."
Sixteen of the 18 strategies tracked by BarclayHedge rose last month, led by Pacific Rim equities, up 5.23%. Equity long-bias funds benefited from the stock rally, gaining 4.13%, as did European equities, up 4.12%. Emerging markets funds gained 3.66%, healthcare and biotechnology funds 3.55% and equity long/short funds 2.85%.
The two losing strategies included—unsurprisingly—equity short-bias, which extended its 24.18% loss from last year with a January swoon of 8.06%. Merger arbitrage funds also lost ground, dropped 1.34%.
Funds of hedge funds returned 2.08% in the first month of the year, BarclayHedge said.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.