Tuesday, 22 July 2014
Last updated 5 hours ago
May 16 2008 | 10:57am ET
Hedge funds able to capitalize on last month’s stock market rally, along with those investing in emerging markets, topped their peers during a strong April for hedge funds, new figures from Hedge Fund Research show.
Equity hedge funds surged on the back of April’s market rally, which drove the Standard & Poor’s 500 Index up 4.87%. The HFRI Equity Hedge (Total) Index rose 2.59% (down 3.46% year-to-date), with quantitative directional and energy/basic materials funds returning 2.72% (down 2.8% YTD) and 2.16% (down 1.59% YTD), respectively.
Short-bias funds, unsurprisingly, did much less well, falling 3.1% in April. Those funds remain, on average, up 4.25% on the year.
Emerging market funds fared even better, with the HFRI Emerging Markets (Total) Index jumping 2.57%. Last year’s top-performing strategy remains down 4.82% in 2008. Asia ex-Japan funds rose 3.94% (they remain down 8.45% year-to-date), while Latin America funds added 3.22% to get back into the black year-to-date at 1%.
Overall, the HFRI Fund Weighted Composite Index added 1.65% last month, though it remains down 1.81% on the year. Funds of hedge funds rose 1.06%, and are down 3.15% year-to-date.
Relative value funds added 1.33% last month (down 2.17% YTD) and event-driven funds returned 1.08% in April (down 2.45% YTD). Macro was the only major strategy tracked by the HRFI indices in the red last month with a 0.15% loss, though it remains the only major strategy in positive ground on the year at 3.99%.
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…