Thursday, 23 October 2014
Last updated 24 min ago
Jun 7 2013 | 2:34pm ET
Hedge funds enjoyed broad, if small, gains last month, according to Hedge Fund Research's HFRX index suite.
The HFRX Global Hedge Fund Index rose 0.75% in May, less than half the Standard & Poor's 500 Index's return for the month. The benchmark is up 4.55% on the year, less than one-third the S&P's gain.
Convertible arbitrage funds led the way in May, adding 2.78% (8.92% year-to-date), followed by event-driven funds (2.16% in May, 0.95% YTD), fundamental value funds (2.09%, 9.3% YTD). Special situations funds added 1.77% last month (10.57% YTD), distressed restructuring funds 1.58% (3.88% YTD), credit funds 1.1% (5.35%), equity hedge funds 0.83% (6.61% YTD) and relative-value funds 0.73% (2.91% YTD).
The losing side of the ledger features fundamental growth funds, down 1.41% (up 2.8% YTD), macro funds and commodity trading advisers, down 0.95% (down 0.41% YTD), systematic diversified CTAs, down 0.8% (down 1.69% YTD), emerging markets funds, down 0.14% (up 3.23%), and the year's best-performing strategy, master-limited partnerships, which fell 0.09% in May but remain up 15.88% 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…
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 ...