Wednesday, 2 September 2015
Last updated 10 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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…