Sat, Jun 25, 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 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. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider