Sat, May 23, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner