Average U.S. Hedge Fund Doubles S&P 500 Return; Preliminary Estimates Show 5.6% Gain in November.NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 7, 1999-- Based on preliminary results, the Average U.S. Hedge Fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" returned 5.6% net in November versus a 2.0% gain for the S&P 500. This brings the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. return of the Average U.S. Hedge Fund to 25.8% net versus a 14.3% return by the S&P 500, George P. Van, chairman of Van Hedge Fund Advisors International, Inc., a leading hedge fund advisory firm, reported today. The Average U.S. Hedge Fund is also outperforming the Dow and the Russell 2000 through November. "Led by technology and smaller cap stocks, the markets gained strongly in November. The NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on , for example, gained a healthy 12.5% this month while the Russell 2000 posted its strongest gains since April with a 6.1% net return. However, hedge funds were not to be outdone out·do tr.v. out·did , out·done , out·do·ing, out·does To do more or better than in performance or action. See Synonyms at excel. , with the top five in our sample returning an average of 34.9% net to investors in November," Van continued. "Market Timing managers appear to have built on last month's strong performance, with the preliminary returns for managers in this category estimated at 9.1% net. In fact, performance looks as though it will be positive across most strategies, with Short Sellers and Market-Neutral Securities Hedging being the only exceptions." "Given present market conditions, we believe that hedge funds will continue to produce the strong returns we've come to expect from them this year." Final November performance for U.S., Offshore and Global hedge funds, by strategy, will be released later this month. A registered investment advisor Registered Investment Advisor (RIA) is a designation obtainable in the United States by an individual who has registered with the U.S. Securities and Exchange Commission or state regulatory agency (where the primary business is situated or multiple States in some cases) in , Nashville, Tenn.-based Van Hedge Fund Advisors International, Inc. introduces top-performing hedge funds to substantial investors in the U.S. and abroad. (The Company's information on hedge funds is based on information received (and not audited or independently verified ver·i·fy tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies 1. To prove the truth of by presentation of evidence or testimony; substantiate. 2. ) from the hedge funds in its databases and may not be representative of all hedge funds. Hedge fund returns are net of fees and performance allocations. The timing of the deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. of such fees and performance allocations may affect the reported performance. Different statistics may be based on different numbers of funds. Averages are not dollar-weighted. Past results are not necessarily indicative of future performance.) |
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