Sat, Jun 25, 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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,