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Wednesday, December 8, 2021

Hedge Funds Post Solid Returns in November


Date: Monday, December 18, 2006
Author: Greenwich Alternative Investments

Greenwich Global Hedge Fund Index (the "Index") returned +2.04% in November (+10.54% YTD), according to hedge fund index provider Greenwich Alternative Investments, LLC. All four of the firms major strategy groups have positive year-to-date returns, with three out of four surpassing +10% through November.

"As was the case in October, all hedge fund strategies followed by the firm, with the exception of short sellers, posted strong gains in November and have positive returns year-to-date," said Ben Rossman, General Manager of the Database and Index Group. "The continued advance in equity markets helped long-biased strategies and, conversely, contributed to negative performance for short sellers."

The November Index includes 1,102 funds. Final Index results will be calculated and posted at www.greenwichai.com at the end of December after additional funds have submitted returns.

Strategy Group Summary

The Specialty Strategies Group, comprising emerging markets, multi-strategy, and income hedge funds, returned +3.11% (+14.61% YTD) in November. Emerging strategies surged, up +4.18% (+18.40% YTD), amid continued optimism for the growth prospects in emerging economies. The Greenwich Global Multi-strategy and Income indices returned +1.77% (+10.68% YTD) and +1.14% (+8.81% YTD), respectively.

The Directional Trading Group, comprising futures, macro-oriented, and market timing strategies, returned +2.37% in November (+5.29% YTD). Futures strategies benefited from continued weakening of the Dollar against the Euro, to the lowest levels since the middle of 2005. Futures, Macro, and Market Timing indices returned +2.74% (+4.92% YTD), +1.83% (+5.51% YTD), and +1.64% (+8.49% YTD), respectively.

The Long/Short Equity Group returned +2.10% in November (+11.07% YTD) with long-biased strategies getting a boost from rising equities, which logically contributed to negative performance among short sellers. The Greenwich Global Opportunistic, Aggressive Growth, Value, and Short Selling strategies, posted November returns of +3.73% (+12.90% YTD), +2.05% (+10.03% YTD), +2.02% (+11.66% YTD), and -3.67% (-6.36% YTD), respectively.

The Market Neutral Group gained +1.19% in November (+10.28% YTD). The Greenwich Event- Driven, Equity Market Neutral, and Market Neutral Arbitrage strategies gained +1.69% (+11.91% YTD), +1.31% (+7.45% YTD), and +0.82% (+10.21% YTD), respectively.

Greenwich Investable Index

The Greenwich Investable Hedge Fund Index returned +1.60% in November (+8.76% YTD). The Investable Index, comprising 45 funds, adds investability, active management and liquidity to the diversification and performance benefits of the broad Greenwich Global Hedge Fund Index. Since its inception in January 2003, the Investable Index has achieved an annualized return of +10.4% versus +11.5% for the Greenwich Global Hedge Fund Index. Cumulatively from inception through November, it has gained +47.4% compared to +53.3% for the Global Index. The Investable Index has a correlation of 0.95 and its beta of 0.89 to the Global Hedge Fund Index.

The Investable Index is reported monthly net of a 0.04% Index calculation fee. Past performance and Greenwich Hedge Fund Indices construction rules may be viewed at www.greenwichai.com. Greenwich manages one of the world's largest hedge fund databases and is among the oldest providers of hedge fund indices and research to institutional investors worldwide.

The accuracy of information reported by managers is not audited or independently verified and may not represent all hedge funds. Greenwich does not necessarily perform due diligence on reporting managers. Hedge fund returns are net of underlying fees and performance allocations, the timing of which may affect reported performance. Averages are equally weighted. Past results are not indicative of future performance.