Tue, Jun 28, 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 Performance Index finished March down 0.70% on equal weighted basis (+0.83% YTD)

Wednesday, April 20, 2011
Opalesque Industry Update - The Scotia Capital Canadian Hedge Fund Performance Index finished March 2011 down 0.09% on an asset weighted basis and down 0.70% on an equal weighted basis. The Index performed in line with North American equities and slightly underperformed global hedge fund indices.

Global capital markets were beset with considerable turbulence in March. Key themes impacting market movements included Japan’s major earthquake, ensuing tsunami and nuclear emergency, continued civil unrest spreading broadly across the Middle East and North Africa, and ongoing concern over fiscal imbalances in Europe.

Volatility spiked dramatically following events in Japan, and equity markets sold off heavily into the first half of March. North American equities rebounded to recover most of the lost ground by month end. Canada’s S&P/TSX posted a monthly loss of 14 bps, the first down month since June 2010, and following a 25% run up. Commodities continued to rally in March, driven primarily by upward pressure on the price of oil.

On the demand side, market participants expressed expectations for an increase based on further macroeconomic data indicating modest economic recovery. On the supply side, market participants expressed mounting concern as geopolitical unrest continued to sweep across the Middle East, further impacting oil-producers.

Precious metals also continued their advance. Uranium was a notable detractor in March, selling off substantially as nuclear power has come under scrutiny as an energy source in light of Japan’s events. This in turn placed significant upward pressure on other energy commodities e.g. natural gas and coal.

US Treasuries rallied significantly mid-month amid the flight to quality, but retraced to end March flat.

FX markets were volatile again in March, driven mostly by activity in JPY trading, as it initially strengthened vs the USD due to expectations for reconstruction in Japan, then weakened following intervention by the G7. The CAD remained above par with the USD.

Canadian hedge funds slightly underperformed global peers in March, with many posting a moderate monthly loss. Managers that had de-risked portfolios during the market sell-off were hard pressed to take advantage of the rebound in the latter half of month. Managers with nimbler trading styles were able to contain losses or in some cases benefit from the significant volatility and very challenging trading environment.

(press release)

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 Canadiandomiciled 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. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s