Monday, 23rd November 2009

 

9 July 2009 - David Walker

Funds of funds miss out on gains

Hedge funds continued to make money last month, but funds of funds have fared poorly at picking the best managers this year and have notched only about half the returns on average of the industry as a whole, according to research.

Hedge funds made 9.4% in the first half of this years, while funds of funds made only 5.2%, according to data provider Hedge Fund Research.

Convertible bond arbitrage funds made 30%, HFR said, eclipsing other prominent strategies including emerging markets hedge funds (up 20.4%), equity long/short (up 12%) and relative value hedge funds (up 13%).

Short sellers are the only hedge funds to have lost money so far this year, down 9.9%.

HFR's figures are fairly similar to those from peer Hennessee Group, whose index of industry performance is up 12%.

Shares are flat so far this year.

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Brummel

Relocation, relocation, relocation

Banks have never been shy of firing staff at the merest whiff of a downturn. First the fat, then the muscle and finally the bone. In the past, cuts have been so deep that firms have found it hard to benefit when the markets rebounded, paying over the odds to restaff at speed. Such wild oscillations in staffing numbers are known as “doing a Merrill”.

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