Few Thanks To Give For Hedge Funds In November

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.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.