Friday, 31 October 2014
Last updated 13 hours ago
Jul 22 2009 | 12:55pm ET
Buoyed by their best month in a decade, hedge funds enjoyed their best quarter in at least six years, according to Morningstar.
The Morningstar 1000 Hedge Fund Index soared 9.25% in the second quarter, its best three-month return since the index debuted in 2003. The index ended the first half up 8.93%, shedding 0.2% in June.
“Smaller single-strategy funds went full throttle back into risky assets in May and June,” Chicago-based Morningstar’s Ben Alpert said. “Overall, hedge funds outperformed both the U.S. stock and bond markets for the first half of the year, although they failed to keep pace with most overseas equities markets. Larger funds were more cautious following the difficult 2008 market, and lagged smaller funds.”
Emerging markets funds and U.S. small-cap funds did the best on the quarter, rising 24.93% (25.5% year-to-date) and 19.72% (16.17% YTD), respectively.
Despite the big returns, Morningstar said that investors are still fleeing the industry. The data provider said that hedge funds suffered a $1.4 billion outflow in May, bringing total losses on the year to $53 billion. Funds of hedge funds, by contrast, actually took in new money in May, adding $294.5 million, although the sector has lost $6 billion on the year. Fund of hedge funds returned 5.46% through June.
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…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.