Wednesday, 22 October 2014
Last updated 7 hours ago
Nov 17 2008 | 9:04am ET
The RBC Hedge 250 Index shed 5.4% last month as the financial crisis continues to ravage the industry.
October’s loss follows September’s 8.05% slide, and leaves the index down 18.2% on the year. Fixed-income arbitrage, convertible arbitrage and event-driven credit hedge funds were especially hard-hit, plummeting 15.44% (down 21.81% year-to-date), 13.6% (down 34.05% YTD) and 11.73% (down 27.43% YTD), respectively. Also in the red last month were multi-strategy, mergers and special situations, and equity long/short funds, which lost 9.38% (down 29.87% YTD), 5.6% (down 21.29% YTD) and 3.67% (down 13.72% YTD), respectively.
On the other hand, the RBC index, which covers investable hedge funds, had more good news that some other indices. Three of the nine strategies covered enjoyed October gains, with macro and equity-market neutral funds adding 0.98% (down 5.59% YTD) and 0.72% (down 4.16%), respectively. The only strategy in the black for the year, managed futures, also posted the best returns of any strategy last month, adding 3.32% (up 11.91% YTD). In September, managed futures was the only strategy in positive ground.
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…
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