Mon, Sep 22, 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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali