HFR: Hedge Funds Down 1.4% In Nov.

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).


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?