Bloomberg just released its brief on Hedge Funds tracking the returns of hedge funds within the Bloomberg BAIF Hedge Fund Index. Hedge funds, in general, have had a miserable 2010 so far as of July 30th. You name the strategy and the returns are dismal. The lower volatility in most asset classes coupled with higher correlation between assets has made finding alpha significantly more difficult than it has been in quite some time.
| Strategy | % YTD Return |
| Dow Jones | 0.36 |
| S&P 500 | (1.20) |
| Nasdaq | (0.64) |
| Mortgage-backed arbitrage | 1.14 |
| Convertible arbitrage | 1.05 |
| Asset-backed arbitrage | 0.98 |
| Distressed | 0.45 |
| Fixed income arbitrage | 0.10 |
| ALL FUNDS | (0.23) |
| Global Macro | (0.44) |
| Multi-strategy | (0.83) |
| Merger arbitrage | (1.34) |
| Market-neutral | (2.01) |
| Equity statistical arbitrage | (2.39) |
| CTA/managed futures | (3.45) |
| Long/Short equities | (4.09) |
| Fixed income arbitrage | (4.19) |
| Short-biased equity | (5.24) |
| Bloomberg Hedge Fund Indices (most recent returns) | |
Brandon R. Rowley
“Chance favors the prepared mind.”
*DISCLOSURE: Nothing relevant.
