Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds end the year positively, outperform S&P in Q4

Wednesday, January 09, 2013

Bailey McCann, Opalesque New York:Hedge funds ended 2012 on a positive note returning an average of +1.5% in December, +1.8% in Q4 and ending the full year +7.3%. Returns lagged broad equity markets for the year, but outperformed in Q4 and many strategies produced strong returns for the year, according to new data from eVestment. Many strategies returned nearly 10%, with credit, volatility and emerging markets producing the year’s best returns.

Credit funds were the stars of 2012, outperforming equities and overtaking them in assets under management for the first time on record. Credit funds were up 12% over equity funds in 2012 overall. Mortgage funds followed credit, returning over 60% in the last 3 years, nearly 5x better than the average hedge fund.

FX, CTAs and equities funds all had a rougher year. Despite FX funds’ strong December on the back of a parabolic JPY/USD move, the group ended the year with some of the lowest returns out of all hedge fund strategies at 2.22%. Managed Futures rallied near the end of the year but not enough to end the year in positive territory. The strategy closed 2012 down -0.71%

Overall, the industry saw approximately $40bn of inflows through November despite often choppy performance - almost doubling last year's full total. This year is already on track to be equally tumultuous, with fiscal cliff/drag, taxes and more regulation on deck for the alternatives industry.

......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an