Thursday, 23 October 2014
Last updated 1 hour ago
May 6 2013 | 1:40pm ET
Hedge funds continue to lag as stocks continue to surge, according to an industry index.
Hedge Fund Research's HFRX Global Hedge Fund Index rose 0.62% in April, a month that saw the Standard & Poor's 500 Index add a further 1.81% to its double-digit returns for the year. By contrast, the HFRX benchmark is up only 3.77% in the first third of 2013.
Emerging markets funds did best in April, rising 2.32% (3.38% year-to-date). Convertible arbitrage funds returned 2.2% (5.97% YTD), special situations funds 1.2% (8.65% YTD) and credit funds 1.12% (4.2% YTD). Master-limited partnerships rose an average of 0.51% on the month to hit 15.98% on the year, by far the best return of any strategy tracked by HFR.
Event-driven funds added 0.95% (6.32% YTD), merger arbitrage funds 0.85% (2.26% YTD), equity hedge funds 0.56% (5.73% YTD), macro funds and commodity trading advisers 0.5% (0.54% YTD), equity-market neutral funds 0.47% (1.02% YTD) and relative-value arbitrage funds 0.47% (2.16% YTD).
Only systematic diversified CTAs lost ground, on average, in April, falling 0.05% (down 0.89% YTD).
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…
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 ...