Mon, Feb 27, 2017
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. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  2. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  3. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  4. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  5. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d