Hedge Funds Rise In November, But Not Enough

Dec 6 2006 | 12:32pm ET

Another month, another hedge-fund beating at the hands of the Standard & Poor’s 500.

According to Hedge Fund Research’s HFRX global and strategy indices, hedge funds didn’t lose by much: The HFRX Global Hedge Fund Index returned 1.54% in November, the S&P500 1.65%. But on the year, it’s no contest and hedge funds will need a Christmas miracle to reach double-digits this year, as the HFRX Global index sits at 7.56% year-to-date. The broad-market S&P500, on the other hand, is up 12.2% YTD.

On the bright side, only one of the eight strategies tracked by HFR was in the red last month: equity-market neutral, which dipped 0.53% and has returned only 3.82% YTD. Of the others, equity hedge (up 1.89% in November, 7.62% YTD) and event-driven (up 1.85% last month, 9.39% YTD) were the best performers. Also besting the overall HFRX Global index YTD are merger arbitrage (up 1% in November, 9.86% YTD), relative-value arbitrage (up 1.15% last month, 8.81% YTD) and convertible arbitrage (up 0.6% in November, 8.13% YTD).

The real money this month—and YTD—is in the HFRX Market Directional Index, which returned 2.4% on the month to reach 9.3% on the year. Absolute return funds were not so lucky: the HFRX Absolute Return Index rose just 0.49% last month, and sits at 6.09% YTD.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note