Hedge funds hit hard in January

Hennesse Hedge Fund Index falls 2.4%, the fourth worst month ever.
FEB 08, 2008
January was a brutal month for hedge funds, according to the latest performance figures out today from Hennessee Group LLC in New York. The 2.4% decline by the Hennessee Hedge Fund Index in January was less than the major U.S. stock indexes fell over the same period but still marked a bad month for hedge funds, according to E. Lee Hennessee, managing principal. “The Hennessee Hedge Fund Index had its fourth worst month in history behind August 1998 (Russian default), April 2000 (bursting of the tech stock bubble), and July 2002 (WorldComm default),” she said. The Standard & Poor’s 500 stock index declined 6.2% in January, while the Nasdaq Composite Index fell 9.9%. Of the 23 subcategories making up the hedge fund index, only three generated gains in January. The short-biased category gained 5.4%, macro funds were up 1.4%, and convertible arbitrage funds were up 0.6%. The worst performing category was the telecom and media index, down 5.1%, followed by a 4.3% January decline by the Asia-Pacific index subcategory.

Latest News

Merrill lands four advisor teams as May recruiting data shows firm's two-way churn
Merrill lands four advisor teams as May recruiting data shows firm's two-way churn

Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.

Fund manager sues Kandeo, alleges $100 million FinSocial loss
Fund manager sues Kandeo, alleges $100 million FinSocial loss

The $36 million buy allegedly hid inflated books and a $50 million diversion.

Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit
Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit

“An award citing emotional distress is very unusual,” an industry executive said.

Workplace financial education linked to stronger financial habits, but participation remains low
Workplace financial education linked to stronger financial habits, but participation remains low

New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.

The rise of the super advisor: How AI is redefining competitive advantage in wealth management
The rise of the super advisor: How AI is redefining competitive advantage in wealth management

Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income