Sun, Mar 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFR: Hedge Funds posted the second consecutive month of gains in October, Composite Index up 2.35% (est.), 7.14% YTD

Saturday, November 06, 2010
Opalesque Industry Update - Hedge Funds posted the second consecutive month of gains in October, as equity markets continued their broad advance on improving prospects for global economic growth. Credit markets remained strong and short dated fixed income advanced on expectations for continued stimulus from the US FOMC. The US$ declined against both the Euro and the Yen, while commodity prices rose, with strong gains in Sugar and Rice, among other Agriculturals. The HFRI Fund Weighted Composite gained +2.35% for the month, with broad-based gains and positive contributions from all main strategy areas.

Macro strategies had the most positive contribution to performance for the month, with the HFRI Macro (Total) Index gaining +2.70%. Commodity and Metals exposure had the most positive influence on Macro performance, contributing to gains across all Macro sub-strategies; currency exposure also had a strong positive contribution. Systematic strategies outperformed Discretionary Macro strategies, but both posted gains for the month with the HFRI Macro: Systematic Diversified Index gaining +3.62% for the month.

Equity Hedge funds also posted strong gains for the month, with the HFRI Equity Hedge (Total) Index gaining +2.47%. Exposure to equities in Energy/Basic Materials and Quantitative Directional strategies posted gains of +5.22% and +3.62%, respectively, leading all Equity Hedge sub-strategies. Gains were also seen across Fundamental Growth, Value, Technology/Healthcare and Equity Market Neutral, with only Short Bias detracting from index performance with a loss of -2.13%.

The HFRI Event Driven Index posted a gain of +1.70%, with positive contributions from Activist and Credit Arbitrage sub-strategies. With financial market liquidity continuing to be strong and risk tolerance returning to investors, all Event Driven sub-strategies posted gains for the month, with these including Distressed, Private Issue/Reg D, Special Situations and Merger Arbitrage.

The HFRI Relative Value Index posted a gain of +1.65%, continuing to lead all main strategies for 2010 with a YTD gain of +9.82%. Prospects for additional fixed income purchases by the US FOMC as well as strength in Energy and Commodity sectors both contributed to gains for the month. Yield Alternatives, which includes Energy Infrastructure investments, posted a gain of +2.21% for the month, while both Convertible Arbitrage and RV: Multi-Strategy funds also posted gains for the month.

The HFRI Fund of Hedge Funds Index gained +1.49%, while the HFRI Emerging Markets Index gained +2.51%, with the strongest regional contribution from Emerging Asia.

(press release)


Performance table: www.hedgefundresearch.com.


Bg

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 - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie