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From Kirsten Bischoff, New York:
Fixed income has long been considered a "diversifier" in many portfolios. Historically, it has delivered returns typically in line with the middle to lower end of the spectrum of hedge fund asset classes (according to Dow Jones Credit Suisse Hedge Fund Index it gained +1% in 2005, +9% in 2006, +4% in 2007, lost -29% in 2008 and gained 27% in 2009). However, in 2010 fixed income performance has shot to the front of the pack, returning +9.8% through the end of September (and early October performance estimates add another 0.78% to that.
As much as hedge fund investors are counseled to have a diversified portfolio, it does become apparent that a certain amount of performance chasing does occur. One such example is with fixed income, which seems to be the strategy currently enjoying 15 minutes of fame.
According to research by TrimTabs/Barclayhedge fixed income funds added nearly $1.3bn to their coffers in September. Eleven of the past fourteen months have seen net inflows and the past five months in a row have illustrated investor enthusiasm (the strategy has logged positive performance since May of this year).
Barnegat continues to log fixed income gains
The $476m, New Jersey-based, fixed income Barnegat Fund, managed by Bob Treue has posted 21.71% gains YTD, with 2.3% of that added in October. Barnegat gained a level of recognition last year when...................... To view our full article Click here
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