Fri, May 27, 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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  5. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year