Wednesday, 1 April 2015
Last updated 13 min ago
Dec 17 2007 | 10:21am ET
A pair of indices show widespread misery for hedge funds last month. Just one of nine sectors tracked by the RBC Hedge 250 Index was in positive territory in November: Managed futures added 0.35%, bringing its year-to-date return to 11.51%.
Overall, the RBC Index was down 1.46% on the month (up 7.78% YTD), while the Hennessee Hedge Fund Index fell 1.58% (up 11.94% YTD). But, as Hennessee Group managing principal E. Lee Hennessee points out, hedge funds manage to lose less than the broader markets, as the Standard & Poor’s 500 Index fell more than 4%, leaving it up just 4.45% in 2007.
“November was a good example of the value that hedge funds provide to investors, as losses by hedge funds are generally less than those of the overall market in periods of turbulence,” she said. “The increase in equity volatility has provided good opportunities for long/short equity strategies this year, although arbitrage strategies have not fared as well.”
Such sentiments are not likely to assuage investors in mergers and special situations funds, which RBC says fell 3.11% (up 9.03% YTD). Hennessee’ arbitrage and event-driven index, for its part, was down about half that with a loss of 1.61% (up 7.56% YTD), while its merger arbitrage index dropped 1.69% (up 13.26% YTD).
Also suffering a rough November were convertible arbitrage funds, which Hennessee says fell 2.04% (up 3.01% YTD) and RBC says dropped 2.07% (up 1.29% YTD).
Other decliners in the Hennessee index include global macro (down 1.68% in November, up 15.84% YTD), long/short equity (down 1.56%, up 12.57% YTD) and distressed (down 1.21%, up 9.37% YTD).
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…