Tuesday, 21 October 2014
Last updated 2 hours ago
Apr 8 2013 | 11:25am ET
Hedge funds closed out the first quarter the way they spent it: up, but trailing the broader markets.
Hedge Fund Research's HFRI Fund Weighted Composite Index rose 1.15% in March and 3.87% in the first quarter. By contrast, the Standard & Poor's 500 Index rose more than 10% in the year's first three months.
Returns were broadly positive across hedge fund strategies—with the notable exception of emerging markets funds. Excepting them, only two substrategies, short bias and energy and basic materials, were in the red last month, falling 2.39% (down 5.5% year-to-date) and 0.48% (down 0.23% YTD), respectively.
Yield alternatives funds did best in March, adding 3.66% (9.38% YTD). Technology and healthcare funds were up 2.93% (6.33% YTD) and multi-strategy relative-value funds 2.85% (5.2% YTD).
Relative value funds rose an average of 1.52% in March (3.75% YTD), equity hedge funds 1.45% (5.29% YTD), distressed and restructuring funds 1.34% (4.37% YTD), event-driven funds 1.02% (3.75% YTD), merger arbitrage funds 0.69% (0.88% YTD), equity market neutral funds 0.68% (2.62% YTD), convertible arbitrage funds 0.6% (2.34% YTD) and macro funds 0.54% (1.43% YTD).
Emerging markets funds fell, on average, 1.04% last month (up 2.39% YTD), but the returns were scattered. Asia ex-Japan funds rose 0.58% (up 4.85% YTD), but Russia and Eastern European funds lost 4.28% (down 0.72% YTD) and Latin American funds fell 1.96% (up 1.1% YTD).
Funds of hedge funds returned 1% on the month and are up 3.46% on the year.
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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...