Investable Funds Top The S&P500 Last Year

Date: Wednesday, January 16, 2008
Author: FINalternatives

Investable hedge funds enjoyed an average return of more than 8% last year, easily topping the broader markets, according to preliminary numbers from RBC Capital Markets.

The RBC Hedge 250 Index added 0.5% last month to reach 8.27% for the year. The Standard & Poor’s 500 returned just 5.49%.

The strongest-performing strategy tracked by RBC in 2007 was equity long/short, which returned 12.83% last year (1.09% in December). It was closely followed by managed futures, which added 11.65% (0.11% in December).

Convertible arbitrage was the only RBC strategy in the red last year, declining 0.09%, after a 1.21% drop in December wiped out its year-to-date gains.

Fixed-income arbitrage returned 8.22% in 2007 (1.21% in December), equity-market neutral 7.28% (down 0.65% in December) and macro 4.06% (1.88% in December).