The hedge fund industry reversed two consecutive months of losses in November, returning 5.54% 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% for November.
For the year-to-date, the hedge fund industry was up 7.21% through November. The S&P 500 Total Return Index gained 14.02% over the same period.
All but one sector tracked by the Barclay Hedge Fund Indices was in positive territory for November.
“Though COVID-19 cases continued to mount, investors were encouraged by several pharmaceutical companies reporting successful vaccine trials in November,” said Sol Waksman, president of BarclayHedge. “U.S. business activity grew at its fastest rate in almost five years during the month as manufacturing activity expanded in the U.S. 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%, followed by the Emerging Markets Eastern European Equities Index gaining 10.44%. Meanwhile, the Equity Long Bias Index returned 9.77%, the Technology Index returned 8.79% and the Healthcare & Biotechnology Index was up 8.51%.
The lone hedge fund sector in the red for November was the Equity Market Neutral Index, off 1.97%.
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%. Other notable year-to-date gainers included the Emerging Markets Global Fixed Income Index, up 22.82%, the Healthcare & Biotechnology Index, rising 19.42%, the Emerging Markets Asian Equities Index, gaining 18.55%, the Volatility Trading Index, advancing 15.51%, the Fixed Income Arbitrage Index, returning 11.39%, and the Convertible Arbitrage Index, rising 10.96%.
Sectors losing ground for the year included the Emerging Markets Latin America Index, off 9.61%, the Emerging Markets MENA Index, down 3.20%, the Equity Market Neutral Index, losing 2.80%, and the Emerging Markets Eastern European Equities Index, dropping 0.90%.
For a complete table of BarclayHedge Hedge Fund and Sub-Index results for November, as well as historical returns, click here.
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Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds and real estate investment firms.
BarclayHedge, a division of Backstop, currently maintains data on more than 7,100 hedge funds, funds of funds and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries.
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