Fri, Sep 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Barclay Hedge Fund Index down -0.38% in December (-5.37% in 2011)

Friday, January 13, 2012
Opalesque Industry Update - Hedge funds lost 0.38% in December, according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index was down 5.37% at the end of 2011.

"Equity markets started the month with a sell-off, and then went on to rally going into Christmas," says Sol Waksman, founder and president of BarclayHedge. "Unfortunately, markets that see-saw can be quite difficult for managers to navigate successfully."

"Dramatic volatility in global equity markets created a significant challenge for fund managers throughout 2011, evidenced by the fact that 60 percent of funds reported a loss for the year," says Waksman.

"This lead to an underperformance by hedge funds of 7.39 percent when compared to the S&P 500, the worst since the 10.69 percent gap in performance back in 2003."

After overall gains in the first four months of the year, it was mostly downhill for hedge funds for the remainder of 2011.

The Barclay Emerging Markets Index lost 13.02% in 2011, Equity Long Bias was down 9.38%, Pacific Rim Equities gave up 7.95%, European Equities were down 6.44%, and the Distressed Securities Index lost 6.32%.

"Although Emerging Markets was the poorest performer of the sectors that we track, investors continue to be attracted to the strategy, as evidenced by inflows of $7.6 billion in the past 12 months," says Waksman.

Equity Short Bias was the strongest performing hedge fund strategy in 2011, with an overall return of 7.70%. Fixed Income Arbitrage gained 4.54% for the year, and Merger Arbitrage was up 3.99%.

"Fixed Income funds saw investor inflows of $18 billion in the past 12 months even as prognosticators fretted that the 3-year rally was starting to appear a bit long in the tooth,"says Waksman.

The Barclay Fund of Funds Index was down 0.49% in December, and lost 6.14% in 2011. Full performance table:

(press release)
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. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  2. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  3. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  4. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to

  5. Hedge funds pull back from Deutsche Bank[more]

    Bailey McCann, Opalesque New York: Hedge funds are pulling some of their business from Deutsche Bank, according to a Bloomberg report. People familiar with th