Tue, May 22, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Scotia Capital Canadian Hedge Fund Index finished December 2010 up 2.23% (20.16% YTD) on asset weighted basis

Wednesday, January 19, 2011
Opalesque Industry Update - The Scotia Capital Canadian Hedge Fund Performance Index finished December 2010 up 2.23% (YTD 20.16%) on an asset weighted basis and up 2.20% (YTD 14.78%) on an equal weighted basis. The Index underperformed broader equities and global hedge fund indices in December, but closed out 2010 with strong outperformance on the year relative to benchmarks on both an asset and equal weighted basis.

Broader equities rallied in December during a relatively quiet month with low trading volumes and decreased volatility. While European sovereign debt and inflation concerns remained at the fore, positive US macroeconomic data contributed to a favourable environment for market participants. In the US, the S&P rebounded, as all ten sectors contributed positively. In Canada, the S&P/TSX advanced a further 3.79%, to finish the year up 14.45%. Gains were slightly dampened by the IT and telecom sectors.

Most commodities advanced in December, especially oil and energy-related resources. Gold was up 2.51%, closing the year up nearly 30% at a record high of $1,421. Silver finished 2010 at $30.92, up a noteworthy 83.18% on the year. In FX, the USD depreciated against major currencies, closing December slightly under par to the CAD. Rates widened again in December on most developed country government bonds, while credit markets rallied.

Canadian hedge fund performance was slightly muted this month relative to broader hedge fund benchmarks. In line with global peers, most Canadian hedge funds took advantage of equity markets’ relative strength, with gains generally made on long equity exposures. The decreased volatility made for a challenging environment for tactical trading. Early December noise in bond markets created some difficulty in fixed income trading, but most managers were able to generate gains on these books by month end.

Commodity-related moves were another positive performance driver. Canadian managers continue to maintain relative caution with net exposures.

(press release)


Table and chart: Source


www.scotiacapital.com


Bg

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. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven