Hedge Funds End of Year
HFR: Hedge Funds Picking up Steam in DecemberHedge funds are picking up steam heading into the new year, according to data from Hedge Fund Research. In the first half of December, the average hedge fund added 0.75% and, despite today's setback on the fiscal cliff negotiations, signs of a potential deal to avoid the fiscal cliff have helped rally the markets and hedge funds. A cautionary note from the good people at FinAlternatives: "Of course, if the U.S. does careen off the fiscal cliff, all bets are off for month-end numbers."
The year 2012 has been something of a dud for the hedge fund industry, but there's hope on the precipice of the fiscal cliff (or on the precipice of a deal to avert it).
Hedge funds are rallying modestly this month, according to figures from Hedge Fund Research. The average fund added 0.75% in the first half of December, meaning that the first two weeks of the month contributed a substantial portion of the HFRX Global Hedge Fund Index's 3.35% return for the year.
With just one exception, all strategies and substrategies tracked by HFRX are up this month. Relative value funds are up 0.92% (3.25% YTD), emerging markets funds 0.9% (7.71% YTD), macro funds and commodity trading advisers 0.76% (down 0.89% YTD), event-driven funds 0.71% (5.35% YTD) and equity hedge funds 0.63% (5.01% YTD).
Among substrategies, systematic diversified CTAs are tops, up 1.35% (down 6.94% YTD, the worst of any strategy or substrategy), followed by fundamental growth funds (1.31% in December, 5.99% YTD), merger arbitrage funds (1.1%, 0.91% YTD) and multi-regional funds (1.09%, 4.8% YTD). Sources