Both gross and net monthly returns for December 2007 in the Palomar Structured Credit Hedge Fund (SC HF) Index show a negative return for the third month in a row, with 15 of 30 funds reporting positive results.
The latest figures for the index were released this week and show a gross return of -1.58% for December, while the net return was -1.70% for the month.
Three sub-strategies, ‘long investment grade leveraged’, ‘long junior, value oriented’ and ‘relative value, intra-credit’, reported negative results in December. The dispersion and range of returns increased slightly compared to the data observed in November.
In 2007 the full-year returns of the indices were -16.44% gross and -17.96% net, compared to +10.88% and +8.30% in 2006.
The objective of the Palomar SC HF Index is to produce an index that represents the risk and return of investable hedge fund investments in the structured credit area. The index aims to provide a monthly measure of the performance of the universe of open, investable structured credit hedge funds. The Palomar SC HF Index is calculated in two formats – as gross asset value and as net asset value.
The Palomar SC HF Index is compiled and run by Palomar Capital Advisors and published exclusively by Structured Credit Investor. Palomar Capital Advisors is a financial advisory firm specialising in structuring, managing and placing alternative investment products, specifically credit-related securities. It is an independent firm based in Zurich, Switzerland, owned and controlled by its investment professionals.