Sun, Apr 19, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge Hedge Fund Index down -2.30% in September, (-4.02% YTD)

Wednesday, October 12, 2011
Opalesque Industry Update - Latest figures show hedge funds outperformed global markets by 7.7% in September

Turbulent conditions and declining equity markets brought with them another month of negative returns for hedge funds in September. The Eurekahedge Hedge Fund Index was down 2.30%1 for the month, though it should be noted that the MSCI World Index fell nearly 10%2 during the same period. More than one-third of all the hedge funds that have reported to the Eurekahedge database for September were in positive territory for the month.

Key highlights for September:

  • Hedge funds outperformed global markets by nearly 7.7%3 in September
  • Early reports indicate negative net flows to hedge funds for the first time since November 2010
  • CTA/managed futures funds witness 12th consecutive month of net positive asset flow

Regional Indices
All regional mandates finished the month in negative territory as the heightened volatility, negative sentiment surrounding Greece’s sovereign debt problem and prevailing fears of another global recession, made it a difficult and unpredictable trading environment. The markets lacked clarity throughout the month in regards to the Greek situation, keeping investors away.

The US Federal Reserve’s announcement of ‘Operation Twist’, on 21st September, did little to sooth investor concerns, and global markets continued to decline further near the month end. North American and European managers were able to provide significant downside protection amid steep declines in the markets, losing 2.10% and 1.99% respectively. The S&P500 declined 7.18% during the month while the MSCI Europe Index was down 11.75%.

Japanese hedge funds witnessed the smallest losses in September, down 0.57%, while the Nikkei lost 2.85%. The Japanese market remained sensitive to global developments during the course of the month and the Nikkei dropped to its lowest point in two and a half years on September 26th, before rebounding on better news from Europe at the month end. Hedge fund managers remained guarded during the month and winning strategies were net-short market positions as well as value investments in the food sector. Managers using options and futures also reported some gains.

Strategy Indices
Following a similar pattern to the one seen in August, most strategies were loss-making in September with the exception of CTA/managed futures funds, which were flat to slightly positive. The Eurekahedge CTA/Managed Futures Hedge Fund Index was up 0.13%4 during the month, with short-term systematic traders leading the gains. Managers trading currencies, options and futures posted the highest profits while returns from commodity investing hedge funds were mixed. Long/short equity and distressed debt hedge funds witnessed the largest losses, down 4.57% and 4.62% respectively, as risk appetite remained low for most of the month. Early reports also suggest that long/short equity managers witnessed the heaviest redemptions during the month...Full performance table:Source

km

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. Studies - Fund managers bullish on equities, alternative asset classes, Hedge funds starting to spurn emerging markets, Insurance companies take aggressive approach to hedge funds despite restricted exposure[more]

    Fund managers bullish on equities, alternative asset classes From Benefitnews.co: Asset allocation and risk continue to be the top issues for institutional investors in 2015 and, while nobody is sure what the economy will do in 2015, investment fund managers remain positive about investm

  2. Investing - New hedge fund strategy: Dispute the patent, short the stock, David Einhorn bets on AerCap as leasing company avoids turbulence, Top hedge funds reveal these best investing ideas, Hedge funds bet big on PetSmart price bump, Victory Park Capital increases investment in upstart to $500m[more]

    New hedge fund strategy: Dispute the patent, short the stock From WSJ.com: A well-known hedge-fund manager is taking a novel approach to making money: filing and publicizing patent challenges against pharmaceutical companies while also betting against their shares. Kyle Bass, head of Hay

  3. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  4. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  5. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

 

banner