Nov. Pumps Up Another Two HF Indices

Date: Monday, December 11, 2006
Author: Hedge Fund Daily

The HFN Hedge Fund Aggregate Average is poised to finish 2006 as the best year in the last three, thanks to an unusually strong November. The average climbed 2.18% last month, bringing its year-to-date total to 10.65%, well ahead of the full 2005 year average of 8.98% and the 9.51% in 2004. The HFN Fund of Funds Aggregate Average also grew in November, 1.79% for a YTD total of 7.92%, compared with 2005’s full-year percentage of 6.81%. All of HFN’s regional and a single-strategy averages were up, with HFN Energy Sector Average surging 4.76%, for 14.89% YTD, followed by HFN CTA/Managed Futures Average, up 3.05% (6.94% YTD) and HFN Emerging Markets Average climbing 2.87% (17.96%). In fact, nine of HFN’s sub strategies are already in double digits for the year through November with HFN Distressed Average at 13.40%, followed by HFN Multi-Strategy Average (12.34%), HFN Event Driven Average (12.20%), HFN Europe Average (12.20%), HFN Convertible Arbitrage Average (11.0%, though it was the weakest November performer, +0.80%), HFN Long/Short Equity Average (10.88%) and HFN US Average (10.16%). Struggling among the group is HFN Market Neutral Equity Average, which moved up 1.10% but recorded only 6.02% so far this year. Meanwhile, the Hennessee Hedge Fund Index added another 1.84% in November bringing its year-to-date total to 10.06%. The Hennessee Long/Short Equity Index advanced 2.09% in November (10.62% YTD), while its Arbitrage/Event Driven Index increased 1.27% to 10.41% for the year so far. Both its convertible arbitrage fund and merger arbitrage indices moved up some 0.81%, giving them year-to-date total of 10.48% and 10.81%, respectively.