Wednesday, 1 October 2014
Last updated 9 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.
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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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