Friday, 31 October 2014
Last updated 3 hours ago
Jan 16 2014 | 1:04pm ET
Hedge funds disappointed in a big way in 2013, with returns at just a fraction of what investors could have earned in a Standard & Poor's 500 Index fund.
The average hedge fund returned just 9.73% last year, according to the Credit Suisse Hedge Fund Index, after a 1.19% December bump. The S&P500, by contrast, soared nearly 30%.
No strategy tracked by Credit Suisse came even close to that figure. The best-performing strategy of the year was long/short equity at 17.74% (1.8% in December), followed by distressed at 16% (1.94%), event-driven at 15.47% (1.61%), event-driven multi-strategy at 15.28% (1.47%) and multi-strategy at 11.23% (1.63%).
Equity market neutral funds added an average of 9.27% last year (1.3% in December), emerging markets 8.81% (1.28%), convertible arbitrage 6.03% (0.54%), risk arbitrage 4.89% (0.39%), global macro 4.32% (0.71%) and fixed-income arbitrage 3.8% (0.18%).
Just two strategies lost ground in 2013: Dedicated short-bias funds shriveled amidst the stock market rally, falling 24.94% (down 0.77% in December). Managed futures funds suffered a more modest decline, dropping 2.56% on the year after rising 0.1% 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…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.