HFN: Hedge Funds Top The S&P In ‘07

Jan 8 2008 | 12:31pm ET

Emerging markets and energy sector hedge funds topped their peers in 2007, as hedge funds topped the broader markets, according to early estimates from HedgeFund.net.

The research firm’s equal-weighted HFN Hedge Fund Aggregate Average returned 10.86% last year, after a 0.89% rise in December. That’s below its 2006 return of 11.99%, but unlike that year, the industry bested the Standard & Poor’s 500 Index in 2007, with the latter returning 4.9% last year.

Emerging markets was the strongest subindex in 2007, returning 20.83% on the year after a 0.94% December return. Rounding out the medal stand are energy sector funds, which powered their way to a 17.53% return on the back of a 3.81% rise in December—the month’s best—and Asia hedge funds, which added 15.86% on the year after a 1.08% increase last month.

None of the strategies tracked by HFN finished the year in the red, but two were losers in December. Convertible arbitrage funds dropped 2.09% in the year’s final month, while event-driven funds lost 0.24%. Both strategies were among the worst performers of 2007, with the former returning just 2.88% on the year, and the latter 6.69%. Other weaker 2007 strategies were distressed (6.25% in 2007, 0.25% in December) and equity market-neutral (7.19%, 1.34% in December).

Among other strategies, CTA/managed futures funds were up 12.7% in 2007 (2.09% in December), macro funds returned 12.4% (1.66%), long/short equity 11.71% (0.68%) and global funds 10.64% (0.71%).

U.S. funds were up 10.64% (10.57%), and Europe funds 7.34% (0.74%).


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note