Mon, Jan 23, 2017
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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised