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MSCI Hedge Fund Index Returns 0.7% in November

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NEW YORK (–Hedge funds in the MSCI Hedge Fund Index returned 0.7% in November, bringing year-to-date returns through November to 12.5%, according to preliminary data.

Four out of the five hedge fund “process groups” tracked by MSCI turned in positive performance, the exception being the MSCI Directional Trading Index. That index, which includes global macro and futures funds, returned negative 0.4% in November and 7.5% year-to-date through November.

The best performing MSCI process group during November and during the year was the MSCI Specialist Credit Index, which includes distressed funds, long/short credit funds and private placement funds. In November, the Specialist Credit Index returned 1.3%, and in the first 11 months of the year it returned 20.4%. MSCI revised the category’s preliminary October return to 1.9% from 1.8%.

The MSCI Security Selection Index also had a good November with a return of 1.1%, putting its year-to-date return at 16.5%. The Security Selection Index return for October was revised slightly to 2.7% from 2.6%. The Security Selection process group includes long/short equity, equity market neutral and short-biased funds.

MSCI’s Multi-Process Group Index returned 0.9% in November and 15.9% year-to-date. The category, which includes event-driven and multi-strategy funds, returned 1.9% in October after an initial report of 1.8%.

Arbitrage funds, which are contained in the MSCI Relative Value Index, returned 0.5% in November and 6.3% year-to-date through November.

Hedge funds compared favorably with the U.S. stock market in November. The Standard & Poor’s 500 Stock Index returned 0.71% in November and 20.27% year-to-date through November. The MSCI World Equity Index did better, returning 1.5% and 25.3% in the same respective periods. The MSCI World Sovereign Debt Index returned 1.7% in November and 10.6% year-to-date.

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