{"id":3955,"date":"2006-02-07T00:00:00","date_gmt":"2006-02-07T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"january-2006-performance-review-of-the-dow-jones-hedge-fund-strategy-benchmarks","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/02\/2006\/january-2006-performance-review-of-the-dow-jones-hedge-fund-strategy-benchmarks.html","title":{"rendered":"January 2006 Performance Review of the DOW Jones Hedge Fund Strategy Benchmarks"},"content":{"rendered":"

HedgeCo.Net – All of the six hedge fund strategies covered by Dow Jones Hedge Fund Indexes entered 2006 by posting net-of-fees gains in January.<\/p>\n

One point worth noting is that as per the indexes\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 calculation methodology, at the start of 2006, the high-water mark for all of the Benchmark components is set to zero. This means that in addition to the net-of-fees YTD performance of the Benchmarks being net of a (prorated) 2% management fee as applied to the components, it is also net of a (prorated) 20% performance incentive fee as applied to the gains accrued by the components in 2006, even if the components ended 2005 in a drawdown.<\/p>\n

With net-of-fees returns of 4.87%, equity long\/short (U.S.)<\/strong> was the top performing strategy. This was followed by event driven,<\/strong> which gained 2.43%. After a difficult 2005, convertible arbitrage<\/strong> posted a gain of 1.83% in January 2006. Distressed securities, merger arbitrage<\/strong> and equity market neutral<\/strong> were up 1.49%, 1.36% and 0.40%, respectively.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Dow Jones Hedge Fund
Strategy Benchmarks<\/strong> <\/p>\n<\/td>\n

\n

January 2006<\/strong> <\/p>\n

(net of fees)<\/strong> <\/p>\n<\/td>\n<\/tr>\n

\n

Convertible Arbitrage <\/p>\n<\/td>\n

\n

1.83% <\/p>\n<\/td>\n<\/tr>\n

\n

Distressed Securities <\/p>\n<\/td>\n

\n

1.49 <\/p>\n<\/td>\n<\/tr>\n

\n

Equity Long\/Short (U.S.) <\/p>\n<\/td>\n

\n

4.87 <\/p>\n<\/td>\n<\/tr>\n

\n

Equity Market Neutral <\/p>\n<\/td>\n

\n

0.40 <\/p>\n<\/td>\n<\/tr>\n

\n

Event Driven <\/p>\n<\/td>\n

\n

2.43 <\/p>\n<\/td>\n<\/tr>\n

\n

Merger Arbitrage <\/p>\n<\/td>\n

\n

1.36 <\/p>\n<\/td>\n<\/tr>\n

\n

<\/p>\n<\/td>\n

\n

<\/p>\n<\/td>\n<\/tr>\n

\n

Dow Jones Wilshire 5000 (Float) <\/p>\n<\/td>\n

\n

3.56% <\/p>\n<\/td>\n<\/tr>\n

\n

Dow Jones World TMI <\/p>\n<\/td>\n

\n

4.98 <\/p>\n<\/td>\n<\/tr>\n

\n

Dow Jones Corporate Bond Index <\/p>\n<\/td>\n

\n

-0.13 <\/p>\n<\/td>\n<\/tr>\n<\/table>\n

On a float-adjusted basis, the Dow Jones Wilshire 5000,<\/strong> a broad measure of the domestic equity markets, gained 3.56% (3.58% on a full-cap basis).<\/p>\n

The fixed income asset class, as measured by the Dow Jones Corporate Bond Index,<\/strong> returned -0.13% in January.<\/p>\n

The world equity markets, as measured by the Dow Jones World Total Market Index,<\/strong> recorded a gain of 4.98% in January 2006.<\/p>\n","protected":false},"excerpt":{"rendered":"

HedgeCo.Net – All of the six hedge fund strategies covered by Dow Jones Hedge Fund Indexes entered 2006 by posting net-of-fees gains in January. One point worth noting is that as per the indexes\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 calculation methodology, at the start of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3955","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=3955"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3955\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=3955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=3955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=3955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}