Sunday, 21 December 2014
Last updated 4 hours ago
Nov 8 2006 | 12:01pm ET
October was a good month for hedge funds. Unfortunately for them, the broader markets had a better month.
A pair of indices showed hedge funds up almost 2% in October, lagging the Standard & Poor’s 500’s 3.15% return for the month. The Hedge Fund Research indices posted a 1.98% gain to hit 9.22% on the year last month—the S&P500 sits at 10.39% year-to-date—while the Barclay Group’s index rose 1.84% on the month.
All but one strategy tracked by HFR rose in October, with emerging markets continuing to lead the way. Asian-focused funds were up 3.45% on the month (16.54% YTD), while those investing in former Soviet-bloc nations rose 1.31% (23.71% YTD, the best of any strategy).
The only loser last month was the HFRI Short Selling index, which dropped 1.27% last month. It is also the only strategy in the red year-to-date, down 1.8%.
Other laggards for the first 10 months of the year include the equity hedge index, which rose 2.09% in October (8.2% YTD), equity non-hedge, with a big October at 3.2% (9.18% YTD), macro 1.35% (4.61% YTD), and relative-value arbitrage, which returned 1.35% on the month (9.12% YTD).
Funds of funds in the HFR indices are also far behind the broader markets, rising 1.56% last month to 6.4% YTD.
Winners on the year so far include convertible bond funds, up 1.34% in October (12.31% YTD), merger arbitrage, which rose 1.66% (11.76% YTD), and event-driven, up 1.73% last month (almost 11% YTD).
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.