Barclay Hedge Fund Index gains 11.21 per cent in 2013
Hedge funds gained 1.23 per cent in December, according to the Barclay Hedge Fund Index compiled by BarclayHedge.
The index gained 11.21 per cent in 2013.
“The US Fed announced in December that it would reduce Quantitative Easing purchases from USD85bn to USD75bn per month, and assured market participants that until certain growth rates and unemployment levels were achieved, interest rates would remain low,” says Sol Waksman, founder and president of BarclayHedge. “Equity prices in the US and Europe rallied on the news and the S&P 500 reached a record high on the final trading day of the year."
Overall, 17 of Barclay’s 18 hedge fund indices had gains in December. The Barclay Technology Index gained 2.05 per cent, Pacific Rim Equities were up 2.05 per cent, Equity Long Bias gained 1.98 per cent, the Healthcare & Biotechnology Index was up 1.91 per cent, Equity Long/Short rose 1.72 per cent, and Distressed Securities added 0.97 per cent.
The leading hedge fund index in 2013 was Healthcare & Biotechnology, which gained 28.98 per cent. Pacific Rim Equities were up 23.14 per cent, Equity Long Bias Index returned 21.52 per cent, and Distressed Securities gained 16.62 per cent for the year.
The Equity Short Bias Index fell 2.46 per cent in December, and was the only hedge fund strategy with a loss in 2013. Short Bias ended the year 27.15 per cent in the red, surpassing last year’s record loss of 24.12 per cent.
“The S&P 500 had its best year since 1997 when it gained 33.38 per cent,” says Waksman. “For traders on the short side of the market, swimming against a strong current can be treacherous.”
The Barclay Fund of Funds Index gained 1.08 per cent in December, and was up 8.46 per cent in 2013.
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