Friday, 31 July 2015
Last updated 9 hours ago
Jan 17 2014 | 4:08am ET
Hedge funds returned 11.21% in 2013, according to BarclayHedge.
The Barclay Hedge Fund Index jumped into double-digits for the year with a 1.23% return in December. But that paled in comparison to the Standard & Poor's 500 Index, which hit a record high on the final trading day of 2013 and enjoyed its best year since 1997.
"For traders on the short side of the market, swimming against a strong current can be treacherous," BarclayHedge founder Sol Waksman said. And, indeed, for short-bias funds, treacherous was an understatement: They fell an average of 27.15% last year, breaking their record on the red side, set the prior year.
The best strategy of the year was healthcare and biotechnology, which rode the market rally to a 28.98% return (1.91% in December). Pacific Rim equities rose 23.14% (2.05%), equity long-bias 21.52% (1.98%) and distressed securities 16.62% (0.97%).
Funds of hedge funds rose just 8.46% on the year after rising 1.08% in December, according to BarclayHedge.
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…