Sunday, 21 December 2014
Last updated 5 hours ago
Dec 5 2008 | 12:43am ET
Hedge funds continued their inexorable slide toward the New Year in November, with the industry almost certainly facing double-digit losses for the full year.
Hedge Fund Research’s HFRX Global Hedge Fund Index shed another 3.04% last month. While that’s a marked improvement from October, when the same index plummeted 9.26%, it leaves the index down 22.3% with just one month to go in the year.
Just like last month, the market continued to eviscerate convertible arbitrage funds. The HFRX Convertible Arbitrage Index dropped another 10.5% last month—it fell an eye-popping 34.68% in October—leaving it down 55.83% on the year. Other strategies with little to be thankful for included relative value arbitrage, which lost 7.91% (down 35.83% year-to-date), and distressed securities, which fell a distressing 6.15% (down 23.68% YTD).
Against that bloody backdrop, equity hedge and event-driven funds look like a rally. The former shed 2.49% in November (down 24.17% YTD) and the latter 2.74% (down 21.5% YTD).
Three strategies tracked by the HFRX indices managed something pretty close to miraculous in this market: positive returns. What’s more, all three are actually up year-to-date, as well. Merger arbitrage funds led the way with a 1.57% return last month (1.45% YTD), followed by macro funds and equity-market neutral funds at 1.48% (2.28% YTD) and 0.69% (0.99% YTD), respectively.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.