Thursday, 24 July 2014
Last updated 16 min ago
Nov 13 2009 | 12:22pm ET
One of the strongest years in hedge fund history may be drawing to a quiet close. The average hedge fund was essentially flat in October, according to the Credit Suisse Index Co.
The Credit Suisse/Tremont Hedge Fund Index rose just 0.17% last month, according to early estimates. The index is up 15.16% on the year, one of the lower figures among major hedge fund indices.
Dedicated short-bias funds enjoyed one of their few bright spots in a year of stock-market rallies, rising 5.75% in October. That’s no surprise, given the 1.9% decline in the Standard & Poor’s 500 Index, but the strategy is still down 18.53% on the year.
With the markets struggling in October, long/short equity hedge funds fell 1.18% last month (15.3% year-to-date). Only managed futures funds did worse on the month, shedding 2.23% (down 6.25% YTD), with equity-market neutral funds the only other strategy in the red in October, down 0.53% (up 4.7% YTD).
Fixed-income arbitrage funds also posted a strong October, rising 2.49% (24.98% YTD), as did convertible arbitrage at 1.9%, which remained far-and-away the strongest performer on the year at 45.64%. Emerging markets funds rose 1.37% last month (26.37% YTD), while multi-strategy funds added 1.05% (21.93% YTD).
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…