Fri, Feb 24, 2017
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

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. People - Kuwait wealth fund head Al Saad said to step down after 14 years[more]

    From Bloomberg.com: Kuwait Investment Authority is set to name Farouk Bastaki as managing director, replacing Bader Al Saad who ran the world's fifth-largest sovereign wealth fund for 14 years, a person familiar with the matter said. The KIA, as the fund is known, is finalizing the appointment, said

  2. Investing - Hedge funds loading up on this dividend stock, The biggest hedge funds have been piling into bank stocks[more]

    Hedge funds loading up on this dividend stock From Incomeinvestors.com: Hedge funds are backing up the truck on Cameco Corp stock. Billionaire Jim Simons owns 389,000 shares. Other Wall Street titans - including Ray Dalio, Ken Griffin, and Chuck Royce - have been quietly building positio

  3. Legal - Fannie, Freddie shares dive after U.S. appeals court ruling[more]

    From Reuters.com: Shares of Fannie Mae and Freddie Mac tumbled more than 30 percent on Tuesday after a U.S. appeals court shut down efforts by hedge funds and other investors to pursue numerous legal claims accusing the U.S. government of seizing their profits following taxpayer bailouts. By a

  4. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  5. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012