Opalesque Industry Update: Hedge funds gained 0.40% in November, according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 6.36% year to date.|
“In spite of an early month sell-off driven by fiscal cliff fears followed by a mid-month rally fueled by encouraging economic data, hedge funds were able to get through the tumult with a small profit in November,” says Sol Waksman, founder and president of BarclayHedge.
The Barclay European Equities Index led all hedge fund strategies in November with a 1.54% gain. Merger Arbitrage was up 1.17%, the Event Driven Index added 0.83%, and Fixed Income Arbitrage gained 0.75%.
“Europe outperformed the US in November; the MSCI Europe Index gained 2.41 percent versus a gain of 0.58 percent for the S&P 500 Total Return Index,” says Waksman.
“In spite of the uncertainty of a clear path to resolution of the eurozone’s fiscal woes, European equities have managed to gain 12.8% this year.”
Only three of the 18 hedge fund strategies tracked by BarclayHedge had losses in November. The Equity Short Bias Index was down 2.34%, Technology lost 0.43%, and Global Macro slid 0.31%.
Year to date, Healthcare & Biotechnology is up 12.93%, and Distressed Securities have gained 10.00%, European Equities are up 8.55%, and Fixed Income Arbitrage has gained 8.47%.
Equity Short Bias is the only losing hedge fund strategy in 2012. After 11 months, Short Bias is down 19.34%. This is its biggest loss since 2003, when the Index was down 23.95% at year-end.
“Upward trending equity markets in 2012 have dealt short sellers a difficult hand to play this year,” says Waksman.
“The dramatic 10.04 percent jump in the Equity Short Bias Index in May was not enough to offset seven months of significant losses.”
The Barclay Fund of Funds Index gained 0.40% in November, and is up 3.40% in 2012.