Thu, Jul 24, 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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  5. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro