Wed, Oct 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge Hedge Fund Index has best September on record +3.4% (5.15% YTD)

Tuesday, October 12, 2010
Opalesque Industry Update - Hedge funds were positive for the third consecutive month in September, up 3.45%, and ended Q3 on a high note amid increased risk appetite and positive movements in underlying markets. The Eurekahedge Hedge Fund Index advanced to a healthy 5.15% year-to-date return, after witnessing its best September on record. The MSCI World Index also posted strong gains of 6.75% for the month.

Below are the key highlights for the month:

Hedge funds delivered the second best monthly performance since May 2003, up 3.45% in September.

Larger hedge funds (AuM>US$500 million) outperformed smaller funds, up 6.35% YTD.

All regions and strategies posted positive returns in September, Greater China hedge funds gained 7.02% during the month.

In terms of regional mandates, hedge funds investing in emerging markets advanced strongly in September, with Asia ex-Japan managers delivering the best performance – up 6.03%. The Eurekahedge Emerging Markets Hedge Funds Index gained 4.20% as the MSCI Emerging Markets Index surged 7.49%. Emerging markets have witnessed strong flows of capital over the last few months, leading to rallies in the underlying equity markets. Asia ex-Japan managers took advantage of the hefty gains across the regional indices – the Hang Seng rose 8.87%, the Sensex gained 11.67% while the Kospi, Shanghai Composite and the Thailand SET also registered healthy returns. Eastern European managers also posted excellent profits, gaining 3.90% on average and bringing their year-to-date returns to 7.21%.

Managers investing in developed markets produced positive returns in September, with North American managers leading the way. The Eurekahedge North American Hedge Fund Index advanced 3.67% for the month while European and Japanese managers gained 2.26% and 0.71%, respectively. The month was marked by increases in most asset classes across geographies. Although the US dollar decreased during the month, heightened risk appetite pushed the S&P 500 up 8.8% while bonds also witnessed a rally in the latter half of the month amid speculation of further quantitative easing by the US Federal Reserve.

Hedge funds of all strategic mandates finished the month with healthy gains. Long/short equity funds delivered the best performance, gaining 4.33% on average, as managers were able to capture most of the upside in the rising markets. Global macro funds and CTA/managed futures funds also posted excellent returns of 3.68% and 3.20%, respectively, as positive movements across most asset classes were profitable for managers. Fixed income strategies also traded higher as increased risk appetite helped distressed debt managers register yet another month of excellent results while a month-end rally in bonds resulted in opportunities for arbitrage, relative value and fixed income managers. The Eurekahedge Distressed Debt Hedge Fund Index continued to lead in the year-to-date measure, up 10.31% September year-to-date.

Full performance chart: Source

(press release)

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t