Opalesque Industry Update - In February, the stock market continued its positive trend. In a favourable context of decreasing implied volatility (18.4%), the S&P 500 Index (+3.43%) recorded a sixth consecutive month of profits and a remarkable cumulative return of 27.73% over the past half year.|
A more contrasted situation prevailed on the fixed income market. Like the stock market, convertible bonds (+2.03%) remained on the rise with a less remarkable but still comfortable return of 15.54% over the same period. Conversely, regular bonds (-0.15%) registered another limited but persistent loss.
With yet another remarkable return in February, the soaring commodities market (+5.43%) generated a stunning profit of 38.40% over the past six months, similar to its record progression of the beginning of 2008. The dollar remained depressed and scored negatively (-1.29%) for the third consecutive month.
With the good performance of convertible bonds compensating its negative exposure to the stock market, the Convertible Arbitrage strategy (+1.66%) managed another month of solid profits. The uptrend of the commodities market and the declining dollar seemed to sustain the CTA Global strategy (+1.72%) which renewed with profitability despite the poor performance of regular bonds.
The equity-oriented strategies all managed positive returns that were proportional to their exposure to the stock market. The Equity Market Neutral strategy registered another moderate but steady gain whereas both Long/Short Equity (+1.44%) and Event Driven (+1.34%) strategies scored well above their respective averages.
Overall, the Funds of Funds strategy (+0.87%) managed an above average return in February.
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