macro hedge funds, which attempt to identify extreme valuations in stock markets, interest rates, foreign exchange rates and commodities, have shown returns of more than 12 per cent this year, outperforming the S&P 500 index by about 17 per cent.
Merger arbitrage managers, who bet on the price movements of companies in the run up to mergers, have posted returnsof just 2.3 per cent in the year to date.
The worst performing hedge funds of the year so far are so-called relative arbitrage funds, which aim to exploit pricing anomalies between assets. These funds are down 6.5 per cent over the year to date.
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