Wed, Mar 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Scotia Capital Canadian Hedge Fund Performance Index up 3.85% in November, 17.54% YTD

Friday, December 17, 2010
Opalesque Industry Update - The Scotia Capital Canadian Hedge Fund Performance Index finished November 2010 up 3.85% on an asset weighted basis and up 3.05% on an equal weighted basis. The Index outperformed broader equities and global hedge fund indices on both an asset and equal weighted basis.

The rally in broader capital markets continued into the first week of November, then reversed as market participants reacted to a confluence of mixed events and increased volatility. At month’s begin, there was positive market reaction to US mid-term elections results, as well as initial enthusiasm over the Fed’s announcement of its QE2. The S&P finished flat, with losses in six of ten sectors. European sovereign debt concerns rose once again to the fore, driving substantial sell-offs in European equity markets that ensued from Ireland’s acceptance of an EU bailout and the possible contagion to Spain and Portugal. Other contributors to an increase in market volatility were the geopolitical tensions between North and South Korea, as well as renewed discussions in China about cooling economic growth with a potential raise in interest rates. In Canada, the S&P/TSX posted gains of 2.18%, buoyed by positive earnings announcements from larger Canadian companies. Positive contribution from the info tech, materials and energy sectors drove Canadian equity market gains. Commodities experienced a great deal of volatility in November and posted flat aggregate monthly results, despite another midmonth record high in gold and a sizeable uptick in oil. In FX, the biggest move was the EUR’s 6.3% decline versus the USD, driven by weakness in Europe. The USD also strengthened by month end versus the JPY and GBP. Rates widened in November on most developed country government bonds, and credit markets declined, particularly in high yield. In November, most Canadian hedge funds benefitted from a fifth straight month of Canadian equity market strength. Selective stock-picking remained a key success factor in an environment of increased volatility, with gains made on both the long and short sides. Gains were also made capturing commodity-related market moves, especially from the oil and gold sectors. Canadian managers have been making cautious incremental increases to long exposures over the recent past, and are also carefully ratcheting up short exposures in anticipation of further market uncertainty. Across strategies, flexibility and nimbleness remain key leitmotifs.

Description
The aim of the Scotia Capital Canadian Hedge Fund Performance Index is to provide a comprehensive overview of the Canadian Hedge Fund universe. To achieve this, index returns are calculated using both an equal weighting and an asset-based weighting of the funds. The index includes both open and closed funds with a minimum AUM of C$15 million and at least a 12 month track record of returns, managed by Canadian-domiciled hedge fund managers. Corporate website: www.scotiacapital.com/hfpi

- FG

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. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  2. 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

  3. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  4. 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

  5. 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