Saturday, 23 August 2014
Last updated 1 day ago
Feb 17 2009 | 1:28am ET
Structured credit hedge funds did not weather the credit crisis at all, with the average fund losing about 40% last year.
The Palomar Structured Credit Hedge Fund Index fell 39.48% in 2008. The index was particularly hard-hit in the final four months of the year, losing 6.16% in September, 4.25% in October, 5.99% in November and 0.74% in December. But even that dismal record pales in comparison to the 17.15% drop suffered in February, mostly due to the collapse of a Peloton Partners asset-backed hedge fund.
“Structured credit got terribly hit; liquidity was virtually non-existent,” Markus Kroll of Palomar Financial Services Group told Reuters. But, he added, “there a few funds that have done really well.”
Those funds are finding their peers fewer and farther between: Many structured credit funds went under last year; the Palomar index had just 19 constituents at the end of last year, down from 30 at the end of 2007 and 40 in July 2007.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note