Tuesday, 21 October 2014
Last updated 53 min ago
Jan 15 2008 | 12:41pm ET
The average hedge fund returned 12.56% in 2007, according to the Credit Suisse Index Co., making last year one of the most successful in recent memory for the industry.
The Credit Suisse/Tremont Hedge Fund Index added 0.47% in December; for the year, the CS index—which registered one of the highest returns of any broad-market hedge fund index—did more than twice as well as the Standard & Poor’s 500, which finished the year at 5.49% after a 0.69% decline last month.
“Global market indices were relatively flat for the month of December. The U.S. continued to show weakness in many sectors as the credit crunch of 2007 continued to affect financial markets worldwide,” Oliver Schupp, president of the CS Index Co., said. “Overall, this market environment has resulted in eight out of 10 hedge fund sectors ending December on a positive note.”
For that matter, all of the sectors ended the year in the black, led by emerging markets, which rose 20.26% on the year after a 1.32% December return. Global macro funds, which added 1.5% last month, were up 17.36% on the year, and event-driven multi-strategy funds returned 16.82% in 2007 after a 0.5% December rise.
On the lower end of the returns spectrum one finds fixed-income arbitrage, which added just 3.83% on the year (0.21% in December). Other weak strategies in 2007 include convertible arbitrage (up 5.17% in 2007, down 0.4% in December), managed futures (6.01%, up 0.42% in December) and dedicated short bias (6.04%, up 0.06% in December).
Long/short equity funds surged 13.66% last year (0.42% last month), event-driven 13.2% (0.32%), multi-strategy 10.1% (down 0.31%) and equity-market neutral 9.27% (0.48%).
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...