Friday, 22 August 2014
Last updated 1 hour ago
Jan 10 2008 | 1:20pm ET
Hedge funds broadly outperformed the broader markets in 2007, according to year-end figures from the Hennessee Group.
Overall, the average hedge fund added 11.64% last year, with the Standard & Poor’s 500 rising 4.9%. The Hennessee Index outpaced the S&P500 by the widest margin in five years.
Short-sellers broke a four-year losing streak in 2007, with long/short equity hedge funds posting an average 12.08% returns. The strategy capitalized in particular on weakness in financials, which were battered by the subprime and credit crises.
“The equity markets are pricing in substantial losses among financial institutions due to their holdings in mortgage-backed securities and collateralized debt obligations,” Charles Gradante, managing principal, said.
International funds enjoyed a banner year, returning 20.02%, with global/macro and macro funds not far behind at 15.59% and 15.13%, respectively. Merger arbitrage funds added an average of 11.58%, distressed 8.87%, arbitrage/event-driven 7.78% and convertible arbitrage 4.36%.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note