Hedge Funds lost 1.53% in February according to the Barclay Hedge Fund Index compiled by BarclayHedge, although putting a good spin on it the firm says this compares to a 3.69% decline in the S&P 500 Total Return Index.
Year to date, the Barclay Index remains up 0.52%, but lags the S&P which has gained 1.83%.
Overall 13 of Barclay’s 17 hedge fund indices lost ground in February. The Global Macro Index was down 3.08%, Equity Long Bias lost 2.78%, Pacific Rim Equities were down 2.14%, and the Event Driven Index gave up 1.42%.
Hedge Funds slid 0.28% in November according to the Barclay Hedge Fund Index compiled by BarclayHedge, which is now owned by Backstop Solutions, versus a 2.04% increase in the S&P 500 Total Return Index. Year to date, the Barclay Hedge Fund Index is down 2.42%, while the S&P has gained 5.11%.
“Global equity markets had mixed returns in November as European markets fell while the US and Asia rose,” says Sol Waksman, founder and president of BarclayHedge. “An 18.4 percent drop in the price of Apple along with declines in Facebook and Netflix – stocks that are widely held by hedge funds – created additional losses for technology funds.”
Hedge funds dipped 2.61% in December, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions, meaning it was down 5.08% for the year.
The loss was less significant, however, than that of the S&P 500 Total Return Index, which dropped 9.03% in December, to end down 4.38% for 2018.
While lowering its projections for future interest rate hikes, the US Federal Reserve raised its benchmark rate a quarter-point in December. That, coupled with extreme volatility in equity markets was a major factor in December’s hedge fund downturn, BarclayHedge says.