{"id":4595,"date":"2006-06-16T00:00:00","date_gmt":"2006-06-16T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-fund-indices-turned-red-in-may","status":"publish","type":"post","link":"https:\/\/staging.hedgeco.net\/news\/06\/2006\/hedge-fund-indices-turned-red-in-may.html","title":{"rendered":"Hedge Fund Indices Turned Red in May"},"content":{"rendered":"

TheStreet.com – The emerging-market crisis and the turmoil in global stock markets are spilling over into hedge funds, as evidenced by the poor hedge fund-performance numbersfor May that were released today.<\/span><\/p>\n

The Credit Suisse<\/strong> (CSR<\/a>:NYSE – commentary<\/a> – research<\/a> – Cramer’s Take<\/a>)\/Tremont Hedge Fund Index, which mimics the returns of 421 funds, is a negative 1.30% in May, the first time this year that the index has posted a negative monthly return. For the year, though, performance remains positive at 6.40%.<\/span><\/p>\n

The Barclay Group, a Fairfield, Iowa-based hedge fund index provider, estimates that more than 70% of hedge funds lost money last month. It reports that the average loss was 3.09%. Overall, the Barclay Hedge Fund Index that tracks the performance of more than 4,700 hedge funds posted a negative 1.78% return last month.<\/span><\/p>\n

The riskier strategies that often give hedge funds an investment edge appear to have weighed heavily on their returns. “With signs that the Federal Reserve<\/strong> would raise interest rates to contain inflation, emerging markets suffered as investors shunned riskier investments resulting in the worst decline of emerging-market assets since 1998,” says Robert Schulman, chief executive of Tremont Capital Management, a Rye, N.Y.-based hedge fund-asset management firm.<\/span><\/p>\n

Not surprisingly, the hedge fund strategy that performed the worst last month was emerging markets, which posted a negative performance of 5.02%, according to the Credit Suisse\/Tremont Index. The second poorest strategy was long\/short equity (-2.84%), as many hedge fund managers have significant positions in emerging markets, as well as long exposure to equities.<\/span><\/p>\n

ReadComplete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

TheStreet.com – The emerging-market crisis and the turmoil in global stock markets are spilling over into hedge funds, as evidenced by the poor hedge fund-performance numbersfor May that were released today. The Credit Suisse (CSR:NYSE – commentary – research – […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4595","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4595"}],"version-history":[{"count":0,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4595\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}