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

Envestnet agrees to buy Vestmark, adding institutional trading muscle
Envestnet agrees to buy Vestmark, adding institutional trading muscle

The deal gives Envestnet institutional-grade trading and tax technology alongside Vestmark's advisory client base

Savvy Wealth lands $100M to scale AI agents for advisors
Savvy Wealth lands $100M to scale AI agents for advisors

The AI-driven RIA has doubled its advisor base to over 150 this year and is on pace to top $100M in annual recurring revenue

Orion expands advisor trading, keeps oversight with firms
Orion expands advisor trading, keeps oversight with firms

New trading tools let advisors execute and rebalance client portfolios directly, while firms retain permission-based control.

Edelman Financial Engines brings fiduciary advice to small business plans
Edelman Financial Engines brings fiduciary advice to small business plans

New ADP-delivered solution gives small and mid-size businesses access to 3(38) fiduciary oversight and participant-level advice for one fee.

Hightower Signature Wealth adds $1.6B Boston-area firm
Hightower Signature Wealth adds $1.6B Boston-area firm

Boston Hill Advisors joins Hightower's national platform as the mega-RIA's latest Massachusetts move drives HTSW closer to its $50 billion target for 2026.

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