Mon, Sep 22, 2014
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali