Fri, Jul 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRX Global Hedge Fund Index declines -0.42% in December ( -8.87% in 2011)

Wednesday, January 11, 2012

Kenneth J. Heinz
Opalesque Industry Update - Hedge funds concluded a challenging 2011 with a decline in December, as the HFRX Global Hedge Fund Index declined by -0.42%, bringing full year 2011 performance to -8.87%. The decline marks only the second calendar year decline since HFRX index performance inception in 1998, also corresponding to the second decline in the last four years. The HFRX Absolute Return Index, which contains constituents with characteristically lower levels of directional exposure, posted a narrow decline of -0.13% for December and -3.72% for 2011.

The HFRX Relative Value Arbitrage Index ended 2011 with a gain of +0.11% in December with positive contributions from Convertible Arbitrage (+0.32%) and Yield Alternatives: Energy Infrastructure strategies. Fixed Income-based Multi-Strategy, Asset Backed and Energy Infrastructure sub-strategies each posted gains in 2011, with the HFRX RV: Multi Strategy Index gaining +0.05% for 2011.

HFRX Event Driven and Macro strategies posted declines of -0.56% and -0.28% for December, concluding 2011 with declines of -4.90% and -4.88%, respectively. Both Macro Systematic Diversified and Merger Arbitrage strategies had positive contribution to Index performance for December, with gains of +0.82% and +0.07%, respectively.

Equity Hedge strategies were the weakest area of performance for both December, with the HFRX Equity Hedge Index posting a decline of -0.85% which was only partially offset by Market Neutral strategies which gained +0.18% for the month. Short Bias and Technology/Healthcare also had positive contributions to Equity Hedge for 2011.

"Volatile and unpredictable market dynamics throughout the year created a challenging environment for hedge funds in 2011, with aggregate losses across currency, commodity, Emerging Markets and equity strategies related to the European currency and sovereign debt crisis," stated Kenneth J. Heinz, President of HFR. "Risk-off trades dominated 2011, creating challenges for convergence oriented funds, while contributing to gains across fixed income and certain low net exposure hedged strategies. After a challenging 3Q, hedge funds adapted strategies to this continuing macro-volatility dynamic in 4Q in anticipation of this environment persisting into early 2012." Full press release: a href=http://www.hedgefundresearch.com/hfrx-monthend_daily.htm target=_blank>Source
PD

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge funds, seeing opportunity, invest in struggling hotels in Puerto Rico[more]

    From NYTimes.com: Puerto Rico’s tourism industry has fallen victim to the island’s struggling economy, hit by one misfortune after another. In March, the San Juan Beach Hotel filed for bankruptcy. This week, the Condado Plaza Hilton was forced to close its casino. But nearly two thousand miles away,

  3. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

 

banner