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U.S. equity markets, hedge fund returns reach all-time highs in November

Tuesday, December 10, 2019
Opalesque Industry Update - Hedge fund returns continued their upward momentum in November, with the industry posting a monthly gain of 1.12%, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. By comparison, the S&P 500 Total Return Index was up 3.63% in November.

For the year-to-date through November, the hedge fund industry returned 8.97%. The S&P 500 Total Return Index gained 27.65% over the same period.

"In spite of four months in a row of declining consumer confidence, U.S. equity markets, as measured by the S&P 500 Index, were able to post new all-time month-end highs for a third consecutive month in November," said Sol Waksman, president of BarclayHedge. "The ensuing tailwind led the Barclay Hedge Fund Index to a new all-time high as well."

Twenty-three of BarclayHedge's 31 hedge fund sector indices posted positive returns in November. The Healthcare & Biotechnology Index led the way with a 6.87% return. Other notable gainers include the Equity Long Bias Index, gaining 3.00%, the Emerging Markets MENA Index, up 1.72%, the Technology Index, advancing 1.54%, and the Emerging Markets Global Equities Index, up 1.38%.

Among the sectors in negative territory for the month are the Emerging Markets Eastern European Equities Index, down 2.37%, the Global Macro Index, losing 1.04%, and the Distressed Securities Index, off 0.96%.

Only two hedge fund sectors have losses on the year as of the end of November. The Equity Market Neutral Index has lost 0.77% and the Volatility Trading Index has given back 0.58% year to date.

Setting the pace among the top year-to-date gainers are the Healthcare & Biotechnology Index, up 20.78%, followed by the Technology Index, gaining 16.02%, the Emerging Markets Eastern Europe Index, returning 14.32%, and the Equity Long Bias Index, up 14.26% on the year.

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