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Benedicte Gravrand, Opalesque Geneva:

Hedge funds lost in mid-December on oil and Russian ruble concerns, claims HFR, as the HFRX Global Hedge Fund Index declined -1.31% (-1.14% YTD). Oil prices plunged through mid-December on excess supply concerns, contributing to increased equity market volatility and pressuring the Russian ruble, HFR reported. Oil declined over 20% intra-month, bringing the decline to nearly 50% from the 2014 intra-year high. Russian equities led declines through mid-month too. Oil volatility also extended to other commodities, with declines in natural gas, hogs and aluminum. Meanwhile, the U.S. Dollar extended gains against all major currencies.

Some hedge funds really did suffer. According to the Financial Times, the Kaltchiga Fund, a hedge fund that invests in Russian equities, has fallen by more than 30% YTD, while Firebird Russia another hedge fund, is down 26%. The Russia Prosperity Fund, a $941m equity hedge fund, has lost 31% of its value.

But not all. "The big selloff in Russia isn’t having much of an effect on hedge funds because they have very little at play there," said Eric Siegel, head of hedge fund research and management at Citi Private Bank, CNBC ......................

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