Sat, Aug 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRX Global Hedge Fund Index gains +1.72% (est) in September, 1.90% YTD

Monday, October 04, 2010
Opalesque Industry Update - Global Equity markets posted strong gains in September, as investors reacted favorably to data on US employment and housing markets. Currencies continued to be a focus in September with the Bank of Japan intervening in currency markets to slow the appreciation of the Japanese Yen; while commodities including agricultural, metal & energies posted gains. The HFRX Global Hedge Fund Index gained +1.72% in September with significant contributions from Equity Hedge and Event Driven strategies. The HFRX Market Directional Index, which employs higher sensitivity to broad market trends, gained +4.22% for September and +7.78 YTD%.

Equity Hedge strategies had the most significant positive contribution to performance, with the HFRX Equity Hedge Index posted a gain of +3.48% in September with contributions from Technology, Oil Services and International Equity Exposures. Corporate earnings continued to set a positive tone as risk aversion subsided, equity market implied volatility declined and a corporate transaction activity increased. Fundamental Growth, Fundamental Value and Equity Market Neutral all posted gains for the month, and each of these are now positive YTD for 2010.

After posting gains in August, Macro was the weakest area of industry performance, with the HFRX Macro Index declining by -1.38%. Losses were primarily concentrated in Discretionary Thematic strategies, as Systematic Macro posted a loss of only -0.28%. Weakness in Macro was related to exposures to long volatility and fixed income exposures, in addition to mixed directional exposures to both currencies and commodities. Positive contributions from Gold and Short US dollar exposures were offset by other commodity losses for the month.

Event Driven strategies had a positive contribution to industry gains for the month, with the HFRX Event Driven Index gaining +2.30. Corporate transaction activity picked up in September with deal announcements, progress and closings in commodity, airline, technology & pharmaceutical industries. Event Driven had a positive contribution from Distressed, Merger Arbitrage and Special Situations Indices, all of which gained for the month.

Relative Value Arbitrage funds posted another positive month, with the HFRX Relative Value Index gaining +1.16% in September on continued spread narrowing, strong credit markets and declining yields. Both Convertible Arbitrage and RV: Multi-Strategy exposure posted gains for the month, inclusive of September gains Relative Value is the best main strategy of industry performance, with a YTD gain of 4.77%.

(Press release)

Full performance charts available: Source

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. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added