Friday, 29 August 2014
Last updated 8 hours ago
Dec 10 2007 | 11:52am ET
November was not a good month for hedge funds. But the numbers make one thing clear: It was no August.
Hedge funds sank 1.4% last month, according to Hedge Fund Research, dragged down by poor performance in some of the year’s most successful strategies. Among the hardest hit were the HFRI Emerging Markets index, which declined 2.76% in November (but remains up a staggering 22.54% year-to-date) and the HRFI Sector: Technology, which declined 3.97% (up 15.38% YTD).
In fact, just five HFRI strategies were in the black last month, led by short-selling, which has had very little to cheer about this year until now: A 6.52% surge that puts the strategy back in the black, year-to-date, at 4.39%. Other strategies posted more marginal gains, with fixed-income returning 0.79% on the month (3.95% YTD), health care and biotechnology 0.74% (12.03% YTD), equity-market neutral 0.59% (5.56% YTD) and relative value 0.48% (9.31% YTD).
Within emerging markets, the year’s biggest winners were the month’s biggest losers. Asia hedge funds fell 3.41% (up 33.43% YTD), while Latin America funds declined by 3.49% (up 15.23% YTD).
Also posting sizeable declines were market-timing (down 2.8% in November, up 8.47% YTD), energy (down 2.15%, up 16.31% YTD), event-driven (down 2.12%, up 7.32% YTD) and distressed securities (down 1.61%, up 5.8% YTD).
Investable hedge funds were much harder-hit, as HFR’s HFRX indices show. Overall, investable funds dropped 2.41%, leaving them up just 4.37% year-to-date. Among individual strategies, only equity-market neutral posted a gain last month, rising 0.15% to 2.42% on the year. On the other side of the coin, equity hedge fell 3.67% (up 3.67% YTD), event-driven 2.97% (up 5.63% YTD) and convertible arbitrage 2.73% (up 1.25% YTD).
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...