Fri, Nov 28, 2014
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. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  4. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  5. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed