Wed, Dec 7, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Global financial markets ended 2010 with a positive tone - HFRI

Friday, January 07, 2011
Opalesque Industry Update - Global financial markets ended 2010 with a positive tone, with strength across global equity, commodity and credit markets throughout the month of December. Fixed income yields rose despite continued subdued inflationary pressures, measures of manufacturing and employment improved while the US dollar declined against most major currencies. The HFRI Fund Weighted Composite Index gained +3.15% for the month, bringing full year performance to a gain of +10.42%; all strategies had a positive contribution for the month, with the most significant gains in Macro and Equity Hedge strategies.

Macro funds posted the strongest gains of the strategies with a contribution from equities and commodities as both fixed income and volatility declined. The HFRI Macro (Total) Index posted a gain of +3.73%, bringing its performance YTD to +8.41%. Both Discretionary and Systematic strategies had similar positive contributions, with short fixed income, long commodity and short US dollar positions contributing to gains for the month. Recovering from November’s losses, persistent trends across many asset classes contributed to a gain of +4.45% for the HFRI Macro: Systematic Diversified Index, with these ending 2010 with a gain of +9.48%.

The HFRI Equity Hedge (Total) Index posted a gain of +3.46%, with strong contributions from Fundamental Growth, Energy/Basic Materials and Emerging Markets exposures. The HFRI EH: Energy/Basic Materials Index gained +4.71%, bringing full year 2010 performance to 15.98%, eclipsing several other strategy indices to become the leading areas of hedge fund performance for the year. Gains across Equity Hedge were strong across nearly all sub-strategies with Quantitative Directional, Technology/Healthcare and Equity Market Neutral all contributing positively. Short Bias funds once again posted a sharp loss, with these declining by -8.51%.

The HFRI Event Driven (Total) Index posted a gain of +2.77%, with all sub-strategies having positive contributions led by gains in Special Situations and Activist funds. Risk tolerance declined and capital market issuance and strategic acquisition activity remained strong, contributing to gains of +3.82% in Special Situations and +2.68% in Distressed/Restructuring; Merger and Credit Arbitrage also posted gains for the month.

The HFRI Relative Value (Total) Index posted a gain of +1.41%, the seventh consecutive monthly gain and 23rd in last 24 months, ending 2010 with a gain of +11.81%. All Relative Value sub-strategies contributed to gains, with Fixed Income Corporate, Multi-Strategy and Yield Alternatives having the most significant positive contributions. Yields rose as investors shifted to riskier assets, offsetting fixed income losses with spread gains. Fixed Income: Asset Backed funds added +0.98% to end 2010 with a gain of +14.32%, while FI: Corporate posted a gain of +1.9v3% for December and credit-focused Multi-Strategy funds gained +1.95%.

The HFRI Fund of Hedge Funds Index posted a gain of +1.97%, while the HFRI Emerging Markets Index gained +2.77%, with the largest contributions from fund exposure in Russia/Eastern Europe and the Middle East.

(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. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  3. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  4. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released

  5. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg