Wed, Mar 21, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Most Edhec hedge fund indices positive in August but poor stock market performances impacted equity-oriented strategies

Monday, September 20, 2010
Opalesque Industry Update - In August, the harsh stock market situation reduced July’s sharp rebound to a mere glimmer of optimism. In a context where implicit volatility was back on the rise (26.05%), the S&P 500 index almost eliminated its gains of July with a significantly negative return (-4.51%). In line with May and June’s performances, the decline in August pulled the year-to-date performance down into clearly negative territory (-4.62%).

On the fixed-income market, even though convertible bonds did not wipe out their exceptional gain in July, they did resume their downward slide (-0.81%). Regular bonds followed a more stable trend and managed a third consecutive month of gains (+0.84%). The Lehman Global Bond index yielded an even better return (+2.01%). After two months on the rise, the commodities market almost erased the previous month’s gain with a sharp drop (-4.89%). The dollar recovered partially (+1.79%) from a hectic summer period.

Similarly to its situation in June, and despite the losses of convertible bonds and a shrinking credit spread (-0.85%), the Convertible Arbitrage strategy took advantage of the plummeting stock market to manage a positive return (+1.25%) for a third consecutive month. Despite the losses on the commodities market but along with regular bonds, the CTA Global strategy managed a significant gain (+3.04%), its best since last November.

The poor performances of the stock market naturally impacted the equity-oriented strategies. After some comfortable gains in July, the Equity Market Neutral (-0.57%), Event-Driven (-0.29%) and Long/Short Equity (-0.96%) strategies all inevitably lost ground.

Curiously enough, despite its reduced exposure to the stock market, the Equity Market Neutral strategy was not the best performing among them. Conversely, the Fixed-Income Arbitrage strategy managed a significant profit (+0.99%).

Globally, the Fund-of-Fund strategy remained stable (+0.02%), clearly outperforming the S&P index.

(press release)

Hedge Fund Strategies

August 2010


Convertible Arbitrage



CTA Global



Distressed Securities



Emerging Markets



Equity Market Neutral



Event Driven



Fixed Income Arbitrage



Global Macro



Long/Short Equity



Merger Arbitrage



Relative Value



Short Selling



Funds of Funds




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. John Paulson, once the industry's largest hedge fund, to return some investors' money[more]

    Komfie Manalo, Opalesque Asia: John Paulson is reported to be retuning some of his investors' money as a number of his hedge funds continue to suffer setbacks, reports

  2. DoubleLine's Gundlach sees U.S. 10-year Treasury yield rising, weighing on stocks[more]

    From Reuters/ Jeffrey Gundlach, the chief executive of DoubleLine Capital and known on Wall Street as the "Bond King," said on Tuesday the yield on the U.S. 10-year Treasury note will likely move higher and pressure riskier assets including equities and junk bonds. Gundlach, on an

  3. SEC charges Theranos CEO Holmes with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about t

  4. Institutional Investors - Overdrawn pension fund scores gains[more]

    From Investments in big banks, pawn shops and rolling papers helped boost public safety workers' underfunded pensions this past calendar years, according to newly released figures. After recording middling returns in recent years, the Police & Fire Pension Fund (P&F) notched

  5. Hot hedge fund loses 21% after bet on volatility goes wrong[more]

    From In December, Shahraab Ahmad shared with his hedge fund clients the principle that helped him trounce peers for two turbulent decades: steer clear of the crowd. He'd turned $50 million into an operation with more than $700 million over three years and delivered market-beating retu