Sun, Sep 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRX Global Hedge Fund Index gained 1.12% (est) in October (+6.52% YTD)

Wednesday, November 03, 2010
Opalesque Industry Update - Equity Markets posted mixed results for the month of October, broadly maintaining but not building on September's strong gains, performance was generally stronger in Asian equity markets. Fixed income markets also gained in October in anticipation of additional quantitative easing & corresponding bond purchases in the US; investors also continued to focus on the mortgage markets and new developments related to foreclosure processing. The US dollar declined against both the Euro and the Yen, while commodities were also mixed, with strong gains in Sugar. The HFRX Global Hedge Fund Index gained +1.12% for the month, with strength in Relative Value Arbitrage, Macro and Equity Hedge offsetting weakness in Event Driven strategies.

The strongest area of contribution was from Relative Value Arbitrage strategies as the HFRX Relative Value Arbitrage Index posted a gain of +1.68%, bringing YTD performance of the index to +6.52%. Performance was strong across different sub-strategy indices as yields generally declined in anticipation of US government fixed income purchases. Both Convertible Arbitrage and RV: Multi-Strategy exposures contributed to gains, as high yield credit generally improved and volatility declined slightly.

Event Driven strategies were the weakest area of performance in an otherwise positive month, with the HFRX Event Driven Index posting a decline of -0.59%; this loss pares YTD gains to +1.42%. Gains in Distressed and Merger Arbitrage (+2.36 and +0.91, respectively) were offset by losses in equity-sensitive Special Situations exposures, as restructurings and announced transactions generally benefited from lower yields and steady improvements in investor risk tolerance. Special Situations posted on offsetting decline of -1.05% on selective weakness in US & developed market equities.

The HFRX Equity Hedge Index posted a gain of +1.55 in a mixed environment for global equity markets, bringing YTD gains to +3.39%. Equity Hedge has the strongest contributions from Fundamental Value and Equity Market Neutral, each adding +1.52 and +0.63%, respectively. Fundamental Growth strategies posted a narrow gain of +0.06% for the month.

Macro strategies posted a gain for the October, with the HFRX Macro Index adding +0.97%, paring a YTD decline in Macro to -1.95%. Macro gains were concentrated in Systematic strategies, which posted a gain of +1.89 on strength in long commodities and metals exposures. Discretionary strategies once again had a partially offsetting negative contribution.

(press release)

Source

kb

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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco

  5. Opalesque Exclusive: Modern investor tools (2): A platform that does the job for you[more]

    Benedicte Gravrand, Opalesque Geneva: A new series on technology providers that assist asset allocators. There is disruption in the investor part of the world of hedge funds, coming from platforms that can replace traditionally-run search and analysis. Here is one of them. L