Sat, Jun 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Australian Fund Monitors Index returned 1.50% in July (+0.32% YTD) while ASX was up 4.46% (-7.75% YTD)

Tuesday, August 17, 2010
Opalesque Industry Update - According to Chris Gosselin, C.E.O. of Australian Fund Monitors Pty Ltd in Sydney, the current markets, whether they be equity or alternative, are proving to be testing times.

Although on a 12 month basis ASX 200 is still in positive territory, up 5.86%, over the 11 months period of September 2009 to the end of July 2010 the ASX 200 has gone nowhere. However that statistic obscures intra-month volatility which has tested fund managers, and long-suffering investors, with some wild swings.

In the past year the ASX 200 has made monthly gains or losses in excess of 5% on six occasions, with the 12% rally for August/September last year offset by the decline of a similar size from April to June 2010.

Index

July 2010

YTD

Last 12 Months

All Funds

1.50%

0.32%

8.12%

Equity Based

2.20%

-0.06%

10.43%

Non Equity Based

-0.27%

-0.04%

4.21%

ASX

4.46%

-7.75%

5.86%

S&P500

6.88%

-1.21%

11.56%

These are obviously not markets for trend followers. At the same time picking the timing of the market's next rise or fall has not been easy given the abrupt nature of directional changes.

Stock picking has been no easier, as has been shown in the past couple of weeks by the likes of Commonwealth Bank, Telstra, AWB and Leighton. This makes it interesting to look through managers' performance reports to see those which highlight positive performance from a particular earnings surprise or event, offset by another manager's negative performance from the same event.

So while it's been tough, it's been encouraging to see equity-based hedge funds at least make headway of close to 10% while the market has bounced up and down on the same spot. In addition year-to-date they have outperformed the ASX by close to 8%. That's not to say that there hasn't been significant monthly volatility within the hedge fund sector, and some significant under and over performance by particular funds.

15% of all funds in the AFM database turned in a negative performance over the past 12 months, whilst at the other end of the spectrum a similar percentage returned over 25%. Some managers that had previously provided stable results started to show that they were not infallible, whilst others continued to provide the consistency we had come to expect.

So while the markets are continuing to test fund managers, some managers' performances are continuing to test investors.

fundmonitors.com.au.


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  2. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  3. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv

  4. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp

  5. CalPERS defines new private equity policy with more direct investments[more]

    Dr. Ashby Monk, the executive director of the Stanford Global Projects Center and one of the world's leading experts on design and governance for institutional investors, told the CalPERS Investment Committee: "Private equity is a tough business for funds - in large part because you need it