Monday, 20 October 2014
Last updated 2 hours ago
Jan 14 2014 | 12:22pm ET
Barring a miraculous 20%-plus average return in December, hedge funds were going to end 2013 far behind the broader markets. And so they have.
The average hedge fund returned 12.86% last year, according to the Hennessee Hedge Fund Index. The Standard & Poor's 500 Index, by contrast, was up about 30%.
Just one strategy tracked by the Hennessee Group managed to match or exceed that lofty return, as healthcare and biotechnology funds soared 34.57% in 2013. The strategy was also the best in December, adding 3.06%. The overall Hennessee index rose 1.52% last month.
Long/short equity funds rose an average of 19.28% last year (2% in December) as stocks rallied. Arbitrage and event-driven funds added 10.28% (1.17%) and global and macro funds 6.15% (1.14%).
Given stocks' fantastic year, equity strategies were tops in 2013. Financial equities funds returned an average of 23.16% last year (3.03%), value funds 21.1% (1.64%), growth funds 18.25% (1.62%) and technology funds 17.58% (2.46%).
Europe funds added 19% (2.37%), distressed funds 16.16% (1.96%), opportunistic funds 15.85% (1.37%), event-driven funds 14.95% (1.67%) and multiple arbitrage funds 11.23% (1.57%). Asia-Pacific funds rose 9.92% (0.93%), international funds 8.74% (1.5%), high-yield funds 7.86% (0.72%), merger arbitrage funds 7.74% (0.97%), market-neutral funds 7.42% (1.5%), emerging markets funds 7.16% (0.55%), convertible arbitrage funds 6.68% (down 0.07%) and fixed-income funds 4.26% (0.14%).
Three strategies suffered losses last year: Short-biased funds, which plummeted 28.33% (down 2.46% in December, the strategy enjoyed only two positive months in 2013); Latin America funds, which lost 2.64% (down 1.48% in December); and macro funds, which ended the year down 0.77% after a 1.21% jump last month.
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…
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