Sat, Apr 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

2012 another disappointing year for hedge funds - BAML

Wednesday, January 16, 2013

Bailey McCann, Opalesque New York: 2012 ranks as the fifth worst year in 18 years for hedge fund performance on the Bank of America Merrill Lynch Global Diversified Hedge Fund Index, according to new data from the firm. Global Diversified HF index was up 5.63% in 2012, compared to an average annual return of 9.20% since 1995. The S&P 500 returned a total of 16.0% in 2012, outperforming the Global Diversified HF index by 10.37%.

For the last 18 years, hedge funds in the index on average have lagged the S&P by 1.8%. Whereas, the HFRI equity hedge (total) index, which includes a more concentrated blend of equity strategies, was up 7.39% in 2012 and leads the S&P 500 by an average of 1.2% since 1995.

For 2012 in total, Distressed Credit and Event Driven performed the best, up 9.61% and 9.10%, respectively. Short Biased and Managed Futures performed the worst and was down 14.31% and 3.13%. Toward the end of the year Market Neutral funds increased market exposure to 5% from 3% net long. Equity Long/Short aggressively bought market exposure to 23% from 19% net long, yet still below the 35-40% benchmark.

The COT Eurodollar benchmark remains bearish coming into the beginning of 2013. According to the report, " the Eurodollar indicator peaked in late November last year indicating a risk that the S&......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Opalesque Exclusive: European stock-picking fund up 19% YTD, bets on small caps’ high cash level[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Here is a European long/short equity fund that has been beating the odds since its 2008 inception by employing its own investment model, frequent company visits

  3. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  4. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  5. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A