Saturday, 6 February 2016
Last updated 17 hours ago
Dec 20 2013 | 12:19pm ET
Hedge funds won't have much to celebrate this holiday season, according to one industry index.
The Barclay Hedge Fund Index rose just 0.71% in November, far behind the Standard & Poor's 500 Index's 2.8% jump last month. For the year, the numbers are no better: With just a month to go, the Barclay benchmark is in striking distance of double-digits at 9.84%—but the S&P500 was up 26% through November.
Sixteen of the 18 strategies tracked by BarclayHedge were in the black last month, led by healthcare and biotechnology, up 3.05% (25.66% year-to-date). "In spite of a dismal launch that raised concerns about Obamacare's longer-term success, healthcare was the top-performing sector in November as well as year-to-date," BarclayHedge founder Sol Waksman said.
Distressed securities funds added an average of 1.71% in November (15.89% YTD), global macro 1.68%, equity long-bias 1.55% (19.23% YTD), European equities 1.37% and Pacific Rim equities 1.24% (20.63% YTD).
Equity short-bias has had as bad a year as healthcare has enjoyed a good: The strategy is down 25.32% after dropping 2.01% last month; the result is worse even than its record loss last year of 24.12%. Emerging markets funds also lost ground in November, falling 0.53%.
The Barclay Fund of Funds Index rose 1.01% on the month (7.22% YTD).