Fri, Mar 6, 2015
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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Patrick McCormack to shut down hedge fund Tiger Consumer[more]

    Komfie Manalo, Opalesque Asia: Patrick McCormack is shutting down his hedge fund Tiger Consumer Management after 15 years "to spend more time with his family," reported Reuters. Tiger Consumer ended February up 4.6% (+3.9% YTD) and assets roughly $1.4bn, reported

  4. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  5. Outlook - 5 reasons why 2015 is looking like a breakout year for alternative investments, Hedge fund manager Dan Loeb predicts disappointment for funds seeking energy distress[more]

    5 reasons why 2015 is looking like a breakout year for alternative investments From Forbes.com: …After a strong 2014, the public markets have been off to a choppy start in 2015. This year, savvy investors may be looking for alpha elsewhere. For many institutions and high-net-worth indivi