Hedge Fund Research Reports Losses

July 10, 2011 James Heinsman Hedge Fund News

Hedge funds have recorded their biggest decline since May of 2010, which, according to Hedge Fund Research, was 1.22% on average. This is actually a small improvement than last year’s 1.67% decline in the Standard and Poor’s 500 Index.

JoycePayne Partners’ William Pusey said that for “a number of top hedge funds…their performance correlates generally to the markets,” as opposed to providing returns that surpass or are unbound to the market.

James Skeggs of Newedge Group’s Europe, Middle East and Africa operations has explained that investors’ dissatisfaction is a result of a mistaken assumption that “all hedge funds hedge.”

“Whilst many hedge fund strategies employ hedging techniques, this is not the case for all funds; macro funds and commodity trading advisors, for example, primarily use directional trades,” Skeggs said. “These may be better characterized as sophisticated investment strategies rather than hedged portfolios.”

HFR said macro funds suffered the worst losses because of inconsistent market conditions.

“Commodities declined across the board on continued economic weakness, while U.S. Treasury yields rose, after declining sharply intra-month,” HFR said. “The U.S. dollar was little changed against major currencies, while also experiencing significant intra-month volatility.”

Economy, Hedge Fund Research, Hedge Funds, Newedge Group,

Comments are currently closed.


Powered by WordPress. Designed by elogi.