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New York (HedgeCo.Net ) – After a disappointing 2008, hedge funds seem to be on the up and up, advancing 1.10% in January according to the latest research by the New York-based Hennessee Group.
According to the research, convertible arbitrage funds are leading the pack, advancing 5.79% in January with the Arbitrage/Event Driven Index advancing 2.36% as a whole. Following suit was the long/short equity strategy, which was up .90% for the month. Experts analyzed this was due to profits made from shorting earnings, since only 55% of companies had met earnings expectations in January. In addition, the Global/Macro fund index rose .44% for the month.
Mutual funds also seem to be showing signs of revival. “We are encouraged by the $6.5 billion that poured into mutual funds during the last week of January,” said Lee Hennessee, Managing Principal of Hennessee Group. “We continue to monitor fund flows and believe that if this trend continues, it could be basing and a bullish sign for equity markets.”
Hedge funds outperformed the markets last month across the board. The S & P 500 dropped 8.57%, the NASDAQ Composite Index declined 6.38% and the Dow Jones Industrial Average dropped 8.84%.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com
New York (HedgeCo.Net ) – After a disappointing 2008, hedge funds seem to be on the up and up, advancing 1.10% in January according to the latest research by the New York-based Hennessee Group.
According to the research, convertible arbitrage funds are leading the pack, advancing 5.79% in January with the Arbitrage/Event Driven Index advancing 2.36% as a whole. Following suit was the long/short equity strategy, which was up .90% for the month. Experts analyzed this was due to profits made from shorting earnings, since only 55% of companies had met earnings expectations in January. In addition, the Global/Macro fund index rose .44% for the month.
Mutual funds also seem to be showing signs of revival. “We are encouraged by the $6.5 billion that poured into mutual funds during the last week of January,” said Lee Hennessee, Managing Principal of Hennessee Group. “We continue to monitor fund flows and believe that if this trend continues, it could be basing and a bullish sign for equity markets.”
Hedge funds outperformed the markets last month across the board. The S & P 500 dropped 8.57%, the NASDAQ Composite Index declined 6.38% and the Dow Jones Industrial Average dropped 8.84%.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com
West Palm Beach (HedgeCo.net) – In their summary of hedge fund performance for the fourth quarter and full year of 2008, Morningstar reported that 2008′s low returns wiped out the last two years gains.
Investors lost their appetite for hedge funds in 2008, Morningstar says, as the vehicles intended to deliver absolute returns were forced to resort to relative claims of success.
"In 2008, hedge fund managers generally failed to deliver," said Morningstar Hedge Fund Analyst Nadia Papagiannis. "The average hedge fund may have lost less than the stock market, thanks in part to large cash allocations, but this level of performance was not why investors agreed to pay 2% management fees and 20% performance fees."
Hedge fund inflows peaked in June 2007 and bottomed in October 2008, when more than $21 billion left the industry. In November 2008, another $19.4 billion flowed out of hedge funds, setting the year-to-date outflows at more than $44 billion.
The number of funds dropping out of Morningstar`s database increased more than 150% in 2008 from 2007—1,158 single-manager funds and 490 funds of funds were removed in 2008 compared to 434 single-manager funds and 208 funds of funds in 2007. (Funds are removed from Morningstar’s database if the fund liquidates, if the manager wishes to stop reporting returns, or if funds fail to report returns for six months.)
Emerging market equities proved to be the worst strategy in 2008, along with convertible arbitrage funds, which took a big hit in 2008.
The best-performing strategy this year was global trend following, a systematic strategy that tracks price trends in liquid derivatives such as futures, options, and currency forwards.
Morningstar has approximately 8,400 hedge funds and funds of hedge funds in its database.
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
