Thursday, 21 August 2014
Last updated 9 hours ago
May 15 2008 | 12:18pm ET
Hedge funds rode strong markets to a positive return last month, reversing some of the declines suffered during a disastrous March.
Long/short equity funds led the way as the Standard & Poor’s 500 Index rose 4.87%, returning 2.2% on the month, though it remains down 1.99% on the year. Fixed-income arbitrage also had a strong April, rising 2.07% on the year (down 4.85% year-to-date) and convertible arbitrage finished April in positive ground (1.11%, down 6.62% YTD).
“After a difficult first quarter for global financial markets, hedge funds rebounded in April, driven primarily by gains in the Long/Short Equity sector,” Oliver Schupp, president of Credit Suisse Index Co., said. “Stronger than expected earnings posted in the financial and retail sectors helped boost investor confidence, driving an increase in stock prices amid declining volatility. Market uncertainty does persist however, as concerns over rising inflation continue to plague economies worldwide.”
On the losing side were managed futures (down 2.15%, up 8.05% YTD) and global macro (down 1.59%, up 5.19% YTD). But nothing compared to the 7.3% decline by dedicated short-bias funds, which remain up 1.81% on the year.
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