Sun, May 1, 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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n