Hedge funds up 5.54 per cent in November, says Backstop BarclayHedge

The hedge fund industry reversed two consecutive months of losses in November, returning 5.54 per cent for the month, according to the Barclay Hedge Fund Index, compiled by BarclayHedge, a division of Backstop Solutions. 

By comparison, the S&P 500 Total Return Index was up 10.9 per cent for November.

For the year-to-date, the hedge fund industry was up 7.21 per cent through November. The S&P 500 Total Return Index gained 14.02 per cent over the same period.

All but one sector tracked by the Barclay Hedge Fund Indices was in positive territory for November.

“Though Covis-19 cases continued to mount, investors were encouraged by several pharmaceutical companies reporting successful vaccine trials in November,” says Sol Waksman, president of BarclayHedge. “US business activity grew at its fastest rate in almost five years during the month as manufacturing activity expanded in the US and China. And, of course, stocks enjoyed a historic month, with the Dow cracking 30,000 for the first time.”

November’s gainers were led by the Emerging Markets Latin American Equities Index, up 13.31 per cent, followed by the Emerging Markets Eastern European Equities Index gaining 10.44 per cent. Meanwhile, the Equity Long Bias Index returned 9.77 per cent, the Technology Index returned 8.79 per cent and the Healthcare & Biotechnology Index was up 8.51 per cent.

The lone hedge fund sector in the red for November was the Equity Market Neutral Index, off 1.97 per cent.

The vast majority of sectors were in the black for the year-to-date through November, with the Technology Index leading the way, up 26.58 per cent. Other notable year-to-date gainers included the Emerging Markets Global Fixed Income Index, up 22.82 per cent, the Healthcare & Biotechnology Index, rising 19.42 per cent, the Emerging Markets Asian Equities Index, gaining 18.55 per cent, the Volatility Trading Index, advancing 15.51 per cent, the Fixed Income Arbitrage Index, returning 11.39 per cent, and the Convertible Arbitrage Index, rising 10.96 per cent.

Sectors losing ground for the year included the Emerging Markets Latin America Index, off 9.61 per cent, the Emerging Markets MENA Index, down 3.20 per cent, the Equity Market Neutral Index, losing 2.80 per cent, and the Emerging Markets Eastern European Equities Index, dropping 0.90 per cent.