Thursday, 25 December 2014
Last updated 1 day ago
Jan 9 2007 | 12:39pm ET
The average hedge fund fell shy of double-digit returns in 2006, according to year-end numbers from Hedge Fund Research’s HFRX indices, but several individual strategies, especially arbitrage funds, managed to return better than 10%.
Still, it wasn’t enough to top to broader markets: None of the dozen HFRX indices or subindices came close to the Standard & Poor’s 500’s 13.62% return.
The HFRX Global Hedge Fund Index rose 1.58% in December to hit 9.26% on the year, while the Equal Weighted Strategies Index closed 2006 with an 8.83% return after rising 1.47% last month. The Absolute Return Index lagged both, returning 1.26% in December and 7.43% on the year.
The best performers were the HFRX Market Directional Index and its subindices. Market directional funds returned, on average, 10.45% in 2006 (1.05% in December). The subindices in the double-digit club were merger arbitrage (10.73% in 2006, 0.85% in December), relative value arbitrage (10.65% in 2006, 1.69% in December) and event-driven (10.32% in 2006, 0.85% in December).
Of the remainder, the top performers included convertible arbitrage (9.57% in 2006, 1.34% in December), distressed securities (9.56% in 2006, 2.1% in December) and equity hedge (9.23% in 2006, 1.5% in December). Equity market-neutral funds had a brutal year, according to HFR, returning only 4.76% on the year (0.91% in December), and, in spite of a strong December during which it returned 2.58%, the HFRX Macro Index could only manage a 5.61% return in 2006.
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.