Hedge Funds Up 8.31% With One Month To Go

Dec 11 2013 | 12:05pm ET

Hedge funds posted broad but uninspiring gains in November as they crawl to the finish in their worst year against the Standard & Poor's 500 Index in more than a decade.

Hedge funds rose 1.03% last month, according to Hedge Fund Research's HFRI Fund Weighted Composite Index. That benchmark is now up 8.31% on the year, leaving hope that a strong Santa Claus rally in December could push the average industry player into double-digits. That would be something of a hollow victory, however, given that the S&P500 is already up 26% on the year.

Technology and healthcare funds were the best performers in November, up an average of 2.25%. They're also the best year-to-date, up 19.66% through 2013's first 11 months.

Yield alternative funds added 1.36% last month (16.66% YTD), systematic diversified funds 1.31% (down 1.4% YTD), asset-backed funds 1.27% (9.22% YTD), equity hedge funds 1.22% (12.94% YTD), macro funds 1.05% (down 0.18% YTD), quantitative directional funds 0.99% (9.77% YTD), distressed and restructuring funds 0.98% (12.25% YTD), equity market neutral funds 0.87% (6.33% YTD), event-driven funds 0.85% (10.99% YTD), multi-strategy funds 0.68% (7.23% YTD), relative value funds 0.4% (6.12% YTD) and merger arbitrage funds 0.23% (4.16% YTD).

"Hedge funds have extended gains in recent months, with Equity Hedge and Event Driven funds leading industry returns as investor risk tolerance continues to normalize, supported by U.S.-centric equity market gains, but despite lack of clarity on reduction of U.S. stimulus measures contributing to mixed performance across global and emerging equity markets," HFR President Kenneth Heinz said. "Through this improving but transitional environment, Macro and trend-following CTA funds have only recently begun to experience improved performance, following calendar year declines in both 2011 and 2012."

Short-bias funds continued to take a beating amidst the market rally, falling 1.34% in November (down 15.87% YTD). Corporate debt funds shed an average of 0.52% (up 3.96% YTD) and convertible arbitrage funds dropped 0.15% (up 7.3% YTD). Emerging markets funds also lost ground, falling 0.17% (up 4.72%); hardest hit were Latin America funds (down 2.41% in November, down 6.11% YTD) and Russia and Eastern Europe funds (down 1.76%, up 2.19% YTD). Asia ex-Japan funds actually posted a respectable 1.13% gain on the month (10.27% YTD).

The HFRI Fund of Funds Composite Index added 1.01% in November, and is up 7.47% on the year.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.