Preliminary returns from managers reporting to the GGHFI show an average decline of -1.13% on the month, while the Greenwich Composite Investable Hedge Fund Index (“GI2”) declined -2.05%. This compares favorably to global equity returns in the S&P 500 Total Return (-7.18%), MSCI World Equity (-6.72%), and FTSE 100 (-2.04%) equity indices. Year-to-date, the GGHFI and the GI2 have shed -16.11% and -18.3%, respectively, while the S&P 500 Total Return, MSCI World Equity, and FTSE 100 Indices have lost -37.66%, -43.81%, and -33.58%, correspondingly. 44% of constituent funds in the GGHFI ended the month with gains.
“Although hedge funds declined during the month of November, they did a better job on average of protecting investor capital than in prior months. While we are seeing further dislocations in funds that trade in less liquid securities, the majority of hedge fund strategy groups seem to have stabilized.” notes Margaret Gilbert, Managing Director.
Long/Short Equity managers declined by -2.55% in November on average. Although these results are less than half of the losses experienced in US equity markets during the month, Long/Short managers were the weakest performing strategy group in November. Value funds performed slightly better than Growth oriented managers, but both lost -2.87%, and -3.38%, respectively. Short Selling managers continued to outperform other hedge fund strategy groups, gaining 5.54%. Year-to-date, Short Selling funds have gained more than 32% and remain the best performing subsector of hedge fund strategies.
Market Neutral funds improved their results in November but still fell on average by -1.27%. Convertible Arbitrage and Distressed managers continued to experience difficult trading environments and increased redemptions, posting the weakest returns among Market Neutral managers, declining by -5.61% and -5.02, respectively. Statistical and Other Arbitrage managers advanced on the month, returning 1.63% and 0.25%, respectively. Merger Arbitrage funds enjoyed a positive month, gaining 1.50% and holding on to a loss of only -3.46% on average for the year.
For the third month in a row, Directional Trading managers moved higher (+2.34%), driven once again by strong results from Futures managers. Directional managers year-to-date through November are now up more than 8% and are the best performing strategy group among hedge funds. Macro managers also advanced in November, with funds gaining 0.91% on average.
Specialty Strategy funds declined marginally in November, with managers losing -2.03%. Emerging Market funds were once again the worst performers among this group, declining by -2.72%.
The GGHFI is one of the oldest benchmarks of the hedge fund universe. Final index results for November will be available mid-December, once additional funds have submitted returns. The GI2, comprising 46 constituent funds, adds investability, active management, and liquidity to the diversification and performance benefits of the broad Greenwich Global Hedge Fund Index. It references actual hedge fund vehicles as opposed to separately managed accounts or other methods used in an attempt to replicate the returns of hedge fund vehicles. The Investable Index has a correlation of 0.95 and beta of 1.01 to the GGHFI and is reported semi-monthly net of a 0.02% per period index calculation fee. Past performance and indices construction rules for all Greenwich Hedge Fund Indices may be viewed at :
www.greenwichai.com
About Greenwich Alternative Investments
Greenwich Alternative Investments, LLC (and its affiliates) manages one of the world’s largest hedge fund databases and is among the oldest providers of hedge fund indices, asset management services, and research to institutional investors worldwide.
This message is intended only for the personal and confidential use of the designated recipient(s) named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination, distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product, an official confirmation of any transaction, or as an official statement of Greenwich Alternative Investments. Email transmission cannot be guaranteed to be secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon as such. All information is subject to change without notice.
“Although hedge funds declined during the month of November, they did a better job on average of protecting investor capital than in prior months. While we are seeing further dislocations in funds that trade in less liquid securities, the majority of hedge fund strategy groups seem to have stabilized.” notes Margaret Gilbert, Managing Director.
Long/Short Equity managers declined by -2.55% in November on average. Although these results are less than half of the losses experienced in US equity markets during the month, Long/Short managers were the weakest performing strategy group in November. Value funds performed slightly better than Growth oriented managers, but both lost -2.87%, and -3.38%, respectively. Short Selling managers continued to outperform other hedge fund strategy groups, gaining 5.54%. Year-to-date, Short Selling funds have gained more than 32% and remain the best performing subsector of hedge fund strategies.
Market Neutral funds improved their results in November but still fell on average by -1.27%. Convertible Arbitrage and Distressed managers continued to experience difficult trading environments and increased redemptions, posting the weakest returns among Market Neutral managers, declining by -5.61% and -5.02, respectively. Statistical and Other Arbitrage managers advanced on the month, returning 1.63% and 0.25%, respectively. Merger Arbitrage funds enjoyed a positive month, gaining 1.50% and holding on to a loss of only -3.46% on average for the year.
For the third month in a row, Directional Trading managers moved higher (+2.34%), driven once again by strong results from Futures managers. Directional managers year-to-date through November are now up more than 8% and are the best performing strategy group among hedge funds. Macro managers also advanced in November, with funds gaining 0.91% on average.
Specialty Strategy funds declined marginally in November, with managers losing -2.03%. Emerging Market funds were once again the worst performers among this group, declining by -2.72%.
The GGHFI is one of the oldest benchmarks of the hedge fund universe. Final index results for November will be available mid-December, once additional funds have submitted returns. The GI2, comprising 46 constituent funds, adds investability, active management, and liquidity to the diversification and performance benefits of the broad Greenwich Global Hedge Fund Index. It references actual hedge fund vehicles as opposed to separately managed accounts or other methods used in an attempt to replicate the returns of hedge fund vehicles. The Investable Index has a correlation of 0.95 and beta of 1.01 to the GGHFI and is reported semi-monthly net of a 0.02% per period index calculation fee. Past performance and indices construction rules for all Greenwich Hedge Fund Indices may be viewed at :
www.greenwichai.com
About Greenwich Alternative Investments
Greenwich Alternative Investments, LLC (and its affiliates) manages one of the world’s largest hedge fund databases and is among the oldest providers of hedge fund indices, asset management services, and research to institutional investors worldwide.
This message is intended only for the personal and confidential use of the designated recipient(s) named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination, distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product, an official confirmation of any transaction, or as an official statement of Greenwich Alternative Investments. Email transmission cannot be guaranteed to be secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon as such. All information is subject to change without notice.