Fri, Oct 28, 2016
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. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa

  2. Investing - Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities, Lansdowne's Roden says likes animal genetics company Genus[more]

    Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities From As ValueWalk reported back in February, earlier this year Andrew Lawrence set out to raise $250 million to $500 million for a fund that will buy stakes in hedge funds that have suspended redem

  3. Opalesque Roundtable: Style drift, poor communications and credibility fatigue are biggest red flags for hedge funds investors[more]

    Komfie Manalo, Opalesque Asia: Style drift, poor communications and credibility fatigue are the biggest red flags for hedge funds investors, said participants of the latest 2016 Opalesque Investor Roundtable, sponso

  4. Barclay CTA Index down 0.40% in September (+0.10% YTD)[more]

    Managed futures traders lost 0.40% in September according to the Barclay CTA Index compiled by BarclayHedge. The Index is up 0.10% year to date. “The US Fed, in spite of its hawkish tone, opted to hold rates steady which roiled financial markets,” says Sol Waksman, founder and president of BarclayHe

  5. Opalesque Exclusive: Meet Emma, your friendly A.I. helper[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Shaunka Khire, who co-designed an artificial intelligence (AI) robot called EMMA/MANSI, talks to Opalesque