Friday, 28 November 2014
Last updated 2 hours ago
Jan 23 2008 | 1:00am ET
While Victor Niederhoffer suffered another implosion last year, his younger brother Roy continued to rack up profits in the face of a challenging environment for hedge funds.
For the year, Niederhoffer reported an estimated 29.5% gain for his $221 million offshore Diversified program and a 19.8% gain for the $614 million offshore Negative Correlation program. During volatile periods in 2007, Niederhoffer said his funds “fulfilled their dual mission of significant stand-alone return and substantial protective impact for portfolios in which they are included,” in his latest missive to investors.
He said the Negative Fund’s November gains of 12.5% was the highest of 174 large funds on the Barclay’s Flash Report that month and it also outperformed during two other challenging periods of the year–February (up 7.31%) and the first half of August. “In fact… the Negative Correlation Fund achieved a –2.04% beta to the S&P 500 for the year, as well as a -0.93 correlation to the S&P 500 for the year. This makes it possible substitute for or adjunct to a put buying strategy, and allows its users to reduce equity downside risk substantially,” he said.
Going forward, Niederhoffer is upbeat on the high volatility and uncertainty across most sectors and anticipates further forays in the high-frequency trading space.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...