Sat, Dec 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI Fund Weighted Composite Index gains 3.37% in September, 4.59% YTD

Friday, October 08, 2010
Opalesque Industry Update: Hedge funds posted the strongest monthly gains in over a year in September, as global equity markets surged on renewed investor confidence in the global economic recovery. Fixed income and commodities also posted gains for the month, while currencies continued to be volatile on the Bank of Japan intervention to weaken the Japanese Yen and continued US policymaker pressure on China to revalue the renminbi.

The HFRI Fund Weighted Composite Index gained +3.37% for the month, the strongest monthly gain since May 2009 and effectively bringing cumulative index performance to the historical record level (high watermark) previously set in October 2007. All 4 main strategies had positive contributions to index performance as below:

Equity Hedge had the strongest contribution to index performance, with the HFRI Equity Hedge Index gaining +4.50% with significant sub-strategy contributions from Fundamental Growth and Energy/Basic Materials focused funds, which gained +6.32% and +5.88%, respectively. Equity Hedge gains were partially offset by significant weakness in dedicated Short Bias funds, which declined by -10.62% for the month. All other Equity Hedge strategies posted gains for the month bringing the HFRI Equity Hedge (Total) Index YTD performance to +3.46%.

The HFRI Macro Index gained +3.08%, with positive contributions from all Macro sub-strategies as financial market volatility declined broadly and strong, tractable, trending behavior persisted. Both Discretionary and Systematic Macro posted gains of +3.6% and +3.08%, respectively; Active Trading and Commodity focused funds also had significant positive contributions.

Event Driven funds also posted strong performance, with the HFRI Event Driven Index gaining +2.21%. Shareholder Activist and Equity Special Situations funds had the strongest contribution to Event Driven Index, as corporate transaction activity continued to be strong and credit markets remained liquid and accessible. Merger Arbitrage and Credit Arbitrage also posted gains for the month.

Relative Value Funds added to strong YTD performance, with a gain for the HFRI Relative Value Index of +1.41% for September bringing YTD performance to +7.75%, the best area of strategy performance. Strongest areas of sub-strategy performance include Yield Alternative and Real Estate focused funds, while Fixed Income and Convertible Arbitrage sub-strategies also posted gains.

The HFRI Emerging Markets Index gained +5.37%, with the strongest performance from Emerging Asia and the Middle East.

Fund of Hedge Funds posted a gain of +2.44% for September, also the strongest calendar month since May 2009.

(Press release)

Full performance charts available: 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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und