Hedge Funds Up 9.73%

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.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

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.