Tue, Sep 2, 2014
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 down - 2.59% in May, (0.13% YTD)

Friday, June 17, 2011
Opalesque Industry Update - The Scotia Capital Canadian Hedge Fund Performance Index finished May 2011 down 2.59% on an asset weighted basis and down 1.15% on an equal weighted basis. The Index underperformed North American equities and global hedge fund indices on an asset weighted basis.

Risk aversion returned to broader capital markets in May. A sharp sell-off in commodities early in the month and a retreat in equities on weaker than expected global economic data were followed by an ensuing bond market rally as investors sought safety.

Intra-month jitters were additionally driven by the themes of more fiscal tightening in China and ongoing concerns over European sovereign debt, the Japanese supply chain and geopolitical events in the Middle East.

In the US, investors also reacted to a potential for an increase in bond market volatility as the US debt limit came to the fore, as well as to the Fed’s imminent exit from its QE2 stimulus program. Canadian equities declined in May with the S&P/TSX posting -1.02%.

Underperforming sectors in Canada were IT, materials and energy, with some tempering of aggregate losses as investors shifted focus to the defensive telecom, utilities and health care sectors.

In commodities, crude was down sharply on expectations for softer demand. Precious metals also dragged as silver gave back nearly 20%, following on from an increase in futures margin requirements. Gold also finished May slightly down.

In FX, the USD rebounded modestly against most major currencies and the EUR weakened to a record low versus the CHF. Bond markets rallied as yields fell across all maturities in developed markets. Canadian hedge funds incurred aggregate losses in May. Many managers across strategies were challenged by the choppy markets. Outperformers attributed gains to stock selection, sector-specific and risk exposures, as well as the ability to navigate sharp reversals.

(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 Canadian-domiciled hedge fund managers. PD

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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Legal – GE Capital and Petters-related hedge fund in legal battle, SEC sanctions Donald Brownstein's hedge fund over conflicts of interest[more]

    GE Capital and Petters-related hedge fund in legal battle From Startribune.com: A billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters. The bankruptcy trustee for two failed Flo

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius