Hedge funds declined 2.7% last month, staying on pace for their worst year ever, but there are some promising signs, Hennessee Group LLC said.
The New York investor adviser's hedge fund index was down 18% through November, but the reading's November and year-to-date declines were about half that of the three major U.S. stock indexes, the firm said. Hedge funds fell 5.5% in October.
"While many managers are seeing attractive investment opportunities, many are struggling to retain investors and their capital bases," Hennessee co-founder Charles Gradante said in a press release issued Monday. A record number of hedge funds have frozen redemptions or set up redemption gates this year, he said.
Nonetheless, Hennessee expects the average fund returning 15% to 25% of investors' assets to meet redemption requests, Mr. Gradante said.
The Credit Suisse/Tremont Hedge Fund Index is likely to post a roughly 0.7% decline for November, following two months with the lowest performance on record. Continuing downward trends in Treasury yields, commodity prices, and currency markets helped the global macro and managed futures sectors, and likely helped mitigate losses in other sectors.
