Both gross and net returns in December for the Palomar Structured Credit Hedge Fund Index were negative for the third month in a row, although 15 of 30 funds reported positive results.
Both gross and net returns in December for the Palomar Structured Credit Hedge Fund Index were negative for the third month in a row, although 15 of 30 funds reported positive results. The index, published by specialist news service Structured Credit Investor, showed a gross decline of 1.58 per cent in December and a net decline of 1.70 per cent.
Three sub-strategies, long investment grade leveraged, long junior, value oriented and relative value, intra-credit, reported negative results in December. The dispersion and range of returns increased slightly compared with the data observed in November.
Over the whole of 2007, the index posted a gross decline of 16.44 per cent and a net fall of 17.96 per cent, compared with a positive gross return of 10.88 per cent and a net return of 8.30 per cent the previous year.
The objective of the Palomar Structured Credit Hedge Fund Index is to represent the risk and return of investible hedge fund investments in the structured credit area. The index seeks to provide a monthly measure of the performance of the universe of open, investible structured credit hedge funds, calculated as gross asset value and net asset value.
The index is compiled and run by Palomar Capital Advisors, a financial advisory firm based in Zürich that specialises in structuring, managing and placing credit-related alternative investment products.
