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Barclay Hedge Fund Index Slides 2.34% in November; Hedge Funds Down a Record 20.63% in Past Six Months

“The past six months of losses have been the worst on record for the hedge fund industry,” says Sol Waksman, founder and president of BarclayHedge.

“Prior to 2008, the longest string of consecutive losing months was three. Hedge funds lost 4.25 percent from September through November of 2000, and then 3.30 percent from July through September of 2001.”

Many hedge fund strategies experienced significant losses in November.  Barclay’s Equity Long Bias Index dropped 4.81%, Healthcare & Biotechnology fell 4.50%, the Emerging Markets Index was down 4.22%, and Convertible Arbitrage lost 3.69%.

Emerging Markets has been the worst performing strategy in 2008, losing 39.34% year-to-date.  Equity Long Bias is down 28.81%, and Convertible Arbitrage has lost 28.02%.

“Early in 2008, there was a great deal of discussion about how emerging markets had ‘decoupled’ from developed markets,” says Waksman.

“The current economic environment has clearly demonstrated that when consumption decreases in developed nations, exporting nations also feel the pain.”

Four of Barclay’s 16 hedge fund indices provided positive returns in November.  The Barclay Equity Short Bias Index gained 3.51%, and is up 43.76% in 2008.

Barclay’s Global Macro Index rose 1.47% in November, Pacific Rim Equities gained 0.23%, and Equity Market Neutral was up 0.13%.

Equity Market Neutral is now down just 0.98% for the year, and Global Macro has a loss of 1.32%.

Through November, the Barclay Hedge Fund Index has fallen 21.27% in 2008, compared to a loss of 37.66% in the S&P 500.

The Barclay Fund of Funds Index was down 1.64% in November, and has lost 20.04% year to date.

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Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For quotes, commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com.

BarclayHedge (formerly The Barclay Group) was founded in 1985 and actively tracks more than 6,600 hedge funds, funds of hedge funds, and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.

Institutional investors, brokerage firms and private banks worldwide utilize BarclayHedge data as performance benchmarks for the hedge fund and managed futures industries.