Sun, May 1, 2016
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n