Tue, Jun 19, 2018
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. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  2. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  3. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  4. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  5. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv