Sun, Jul 24, 2016
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 returns 2.83% in February (1.18% YTD) on asset weighted basis, 1.29% (1.53% YTD) on equal weighted basis

Friday, March 18, 2011
Opalesque Industry Update - The Scotia Capital Canadian Hedge Fund Performance Index finished February 2011 up 2.83% (1.18% YTD) on an asset weighted basis and up 1.29% (1.53% YTD) on an equal weighted basis. The Index underperformed broader equities in February, but performed in line with global hedge fund indices.

Broader capital markets continued to rally in February. Despite high levels of intra-month volatility from rising tensions over civil unrest spreading throughout the Middle East, developed equities markets proved to be resilient, benefitting partially from more stabilizing macroeconomic data and continued positive corporate earnings results.

At the same time, emerging market equities declined against rising commodity prices and concern over inflation. In the US, the S&P500 posted a gain of 3.20%, led once again by the energy sector. In Canada, the S&P/TSX advanced 4.31%, driven by gains in IT, financials and energy. Commodities continued to rally in February.

Sharp upward pressure particularly on Brent Crude was driven primarily by heightened investor concern over supply as geopolitical unrest began to spread to oil-producing countries, i.e. to Libya and potentially to Saudi Arabia. Effects from rising oil prices spilled over to soft commodities that rose on expectations for higher distribution costs, and to a flight to safety to precious metals, as gold and silver posted strong gains. FX markets were highly volatile in February, and the USD depreciated against major currencies. The CAD saw strong gains versus the USD, driven to a great extent by upward pressure on commodities. Rates markets saw further widening on yields on most developed country government bonds in the first half of the month, then narrowed in the latter part of February with a flight to quality as investors sought to de-risk portfolios against the backdrop of unrest in the Middle East.

Canadian hedge funds performed in line with global hedge fund benchmarks on an equal weighted basis. Many Canadian hedge funds benefitted from the continued rallies in developed market equities and commodities, as well as from opportunities provided by the spike in intra-month volatility. Key performance drivers in February included security selection and timing of portfolio adjustments. Managers are maintaining modest to low risk exposures. Caution, defensive positioning and flexibility remain leitmotifs in an environment of heightened uncertainty.

(press release)

Full performance table: Source


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.


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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe