Thursday, 31 July 2014
Last updated 3 hours ago
Nov 15 2007 | 11:40am ET
Emerging markets and short-biased hedge funds were on opposite ends of the market in October, according to data from the Credit Suisse Index Co.
Overall, the Credit Suisse/Tremont Hedge Fund Index rose 3.16% last month, and is up 13.41% year-to-date. Emerging markets was (again) far and away the strongest strategy, adding 5.48% on the month. It is also the best-performing strategy of the year, returning 20.94% through October.
“The [Federal Reserve] interest rate cuts promoted a rally in global stock markets while treasury notes declined, the dollar weakened, and crude oil rose to a record $95.91 a barrel,” CSI President Oliver Schupp said. “Overall, this market environment led to the majority of hedge fund sectors ending October on a positive note.”
Managed futures, event-driven multi-strategy and long/short equity also posted strong months, at 4.06% (6.69% YTD), 3.84% (18.54% YTD) and 3.73% (15.15% YTD), respectively. Multi-strategy funds were up 3.02% (11.71% YTD). Year-to-date, both global macro and event-driven funds are beating the Standard & Poor’s 500, with the former up 15.82% through October, when it added 2.72%, and the latter returning 14.77% in the period after a 2.91% return last month. The S&P500 is up 10.87% year-to-date, and returned 1.59% in October.
The only strategy in the red—both for October and year-to-date—was dedicated short bias, which fell a further 2.49% after September’s precipitous 4.94% decline. The strategy is down 3.93% year-to-date.
It was much the same story on the investable side: the Sector Invest Emerging Markets returned 4.8% on the month, and is up 17.22% year-to-date. Managed futures did almost as well, actually outperforming its non-investable counterpart with a 4.45% return (7.08% YTD), and investable long/short funds added 3.12% (11.9% YTD).
The Sector Invest Short Bias index was the only investable subindex down for the month, as it dropped 2.94% (down 5.71% YTD). Year-to-date, however, it has company: The Sector Invest Fixed-Income Arbitrage index is down 4.96% through October in spite of a positive 1.06% return last month.
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…