Thu, Apr 17, 2014
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   |   
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. Opalesque Exclusive: European stock-picking fund up 19% YTD, bets on small caps’ high cash level[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Here is a European long/short equity fund that has been beating the odds since its 2008 inception by employing its own investment model, frequent company visits

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an