Friday, 25 July 2014
Last updated 17 hours ago
Oct 16 2007 | 11:35am ET
The equity market outperformed hedge funds last month but don’t expect the latter to complain about the end of this year’s brutal summer.
Hedge funds rose 2.71% last month, according to the Credit Suisse/Tremont Hedge Fund Index. The sector is now up 9.93% to date, still ahead of the Standard & Poor’s 500, which has returned 9.13% in 2007 after last month’s 3.74% jump.
Managed futures and emerging markets funds paced hedge funds last month, rising 5.13% and 4.77%, respectively. But while the former needed last month’s hot performance just to get into the black—it is up 2.53% year-to-date—emerging markets merely extended its lead over all comers, having returned 14.65% year-to-date.
“In September, as was generally expected, the U.S. Federal Reserve moved to stop the spreading credit crunch from further impacting the global economy with a half-percentage-point cut in interest rates,” Credit Suisse Index Co. President Oliver Schupp said. “The rate cut also led to a sharp fall by the U.S. dollar and the rise of long-term Treasury-bond yields and oil prices, which could potentially foster inflationary pressures. Overall, this market environment has led to the majority of hedge fund sectors ending September on a positive note.”
Of course, with equity markets rising, short-sellers had a tough go of it. The Credit Suisse/Tremont dedicated short-bias subindex dropped 4.94% last month, leaving it the only strategy tracked by the firm in negative territory, down 1.48% this year.
Other strong performances came from global macro (up 4.1% in September, 12.76% YTD), long/short equity (3.31%, 11.01% YTD) and risk arbitrage (3.22%, 8.04% YTD).
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…