Hedge funds struggle but outperform
While some hedge funds are weathering the sub-prime crisis extremely well, others are finding the environment far more challenging, according to the latest Greenwich Global Hedge Fund Index.
The index fell to its lowest point since July 2002 in January, but nonetheless revealed that 79 per cent of hedge funds outperformed the S&P 500, with 33 per cent ending the month in positive territory.
Greenwich Alternative Investments managing director Margaret Gilbert said despite January being hedge funds’ weakest month since July 2002, hedge funds fell far less than equities.
She said the downside protection had been particularly apparent over the past 12 months with hedge funds returning 7.14 per cent over the S&P 500, which had declined by 2.31 per cent over the period.
At the same time, the Greenwich Alternative Investments Macro Sentiment Indicators revealed that despite the turmoil in US equities starting off 2008, managers were evenly divided on the prospects for the S&P 500, with 50 per cent reporting a bullish position while 50 per cent were bearish.
AUTHOR
Mike Taylor
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
Frontier Advisors has bolstered its Japanese footprint through a partnership with the $350 billion asset management arm of Nippon Life Insurance Company.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
