Wed, Sep 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds up 0.71% in August

Friday, September 10, 2010
Opalesque Industry Update - Based on 35.78% of the funds reporting the NAV for August 2010 as at 9 September 2010.

Hedge funds were up for the second month running as managers outperformed the underlying markets in August. The Eurekahedge Hedge Fund Index was up 0.71%1 during the month, bringing the year-to-date August returns to 1.92%. The MSCI World Index, on the other hand, was down 3.69%, with its year-to-date August figure falling to -7.51%.

Below are the key takeaways for the month:

* Hedge funds outperformed global markets by 7.5% August YTD.

* Assets in UCITS III hedge funds crossed US$130 billion.

* CTA/managed futures funds delivered 3.00% in August.

* Distressed debt hedge funds were up 8.56% August YTD.

* Japan is the best performing hedge fund region versus the underlying markets – the Eurekahedge Japan Hedge Fund Index was ahead of the Nikkei 225 by 16.8% August YTD.

In terms of regional mandates, hedge funds in the American time zone were the best performing, with Latin American managers posting gains of 0.60% and North American managers delivering profits of 0.37%. North American managers delivered significant outperformance to underlying equity markets through their exposure to safe assets such as gold and the US dollar – both of which were up during the month. Other US commodities also witnessed rallies, helping North American CTA managers to post excellent returns of 2.24%, the best among the regional managers. As of August year-to-date, the Eurekahedge North American Hedge Fund Index advanced 2.62% while the S&P 500 is down 5.9%.

On the flip side, Japanese managers suffered the greatest losses in August as the Eurekahedge Japan Hedge Fund Index lost 1.03%. The Nikkei 225 was down 7.5% in the month, breaking below 9,000 points, which had been a support level for over a year. The strong Japanese yen, trading at a 15-year high against the US dollar, also translated into declines in the underlying markets. European hedge funds were also in the red as the Eurekahedge Europe Hedge Fund Index lost 0.26% in the month.

In terms of strategic mandates, CTA/managed futures hedge funds delivered the best performance in August as a spike in risk aversion during the month sent money into safety assets and benefited managers who were long on gold and the US dollar. Rallies in soft commodities were also profitable for CTA managers – the Eurekahedge CTA/Managed Futures Hedge Fund Index was up 3.00% in August. Fixed income strategies also ended the month in positive territory amid a flight of capital to the safety of bonds. Long/short equity managers, however, suffered marginal losses to the tune of -0.46% amid negative movements in most equity markets across the globe.Source
KM

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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Outlook - Julian Robertson: There are two bubbles that can bite us[more]

    From Businessinsider.com: Legendary hedge fund manager Julian Robertson gave a warning about two bubbles that could "bite us" at Bloomberg Market's Most Influential Summit. "I agree with the fact that the economy is definitely getting better. I think the cause of that is two bubbles that will

  3. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  4. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  5. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e