Wednesday, 23 July 2014
Last updated 14 hours ago
Feb 8 2008 | 9:37am ET
When the January chill is in the air, hedge funds are usually heating up; not so this year. Last month was one of the worst-ever first months of the new year.
According to preliminary results from several indices, hedge funds declined between 1.8% and 3.6%.
Among the biggest losers were equity long/short funds and last year’s industry darling, emerging markets. The former dropped 4.1%, according to Hedge Fund Research, which registered an overall 1.8% decline for hedge funds, while the Dow Jones Hedge Fund Indexes recorded a much more precipitous 10.05% fall for the strategy. The latter lost 8.81%, according to BarclayHedge.
Event-driven funds also suffered last month, falling 1.8%, according to HFR, and 2.71%, according to Dow Jones.
Last month’s losses tarred some very big names in the industry, including Goldman Sachs’ brand-new stock picking hedge fund, which fell 6%. Both Farallon Capital Management and Third Point suffered a 3.6% decline, while Norway’s Concentric Capital’s European fund dropped 22%.
All six of the strategies tracked by Dow Jones were in the red last month. Distressed securities fell 4.09%, merger arbitrage 2.87%, equity-market neutral 1.79% and convertible arbitrage 1.6%.
Short-biased funds avoided the chill, no surprise as the Standard & Poor’s 500 fell 6.1%, returned 1.28% last month, according to BarclayHedge.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…