Mon, Feb 27, 2017
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. Legal - Fannie, Freddie shares dive after U.S. appeals court ruling[more]

    From Reuters.com: Shares of Fannie Mae and Freddie Mac tumbled more than 30 percent on Tuesday after a U.S. appeals court shut down efforts by hedge funds and other investors to pursue numerous legal claims accusing the U.S. government of seizing their profits following taxpayer bailouts. By a

  2. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  3. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  4. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  5. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s