Sun, May 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFN Hedge Fund Aggregate Index down 2.79% (est.) in September (-5.28% YTD) as continued volatility impacts fund performance, investor flows

Wednesday, October 12, 2011
Opalesque Industry Update - Q3 2011 hedge fund performance (-5.68%) resulted in the first quarter of net investor redemptions since the financial crisis.

Below are early estimates (1) for September hedge fund performance and asset flows. A full report will be available later in the month.

September Highlights:

• The HFN Hedge Fund Aggregate Index was -2.79% in September 2011, -5.68% in Q3 and -5.28% on a year-to-date (YTD) basis. The S&P 500 Total Return Index (S&P) was -7.03% in September, -13.87% in Q3 and -8.68% YTD.

• Hedge fund assets decreased an estimated 3.06% in September to $2.460 trillion; the largest AUM decline since January 2009. The decrease was primarily performance driven, but net investor flows were negative for the second time in Q3.

• Performance and market volatility has impacted investor sentiment. In September, performance losses decreased AUM an estimated $64.2 billion while investor flows accounted for a net decrease of $13.4 billion.

• Q3 2011 performance and net investor flows were the worst since Q1 2009. Investors redeemed an estimated $18 billion during the quarter and performance losses dropped AUM an additional $83 billion.

• Short biased and FX focused funds were among the top performers, +9.16% and +2.32%, respectively for the month. Emerging markets and energy sector funds posted their second consecutive month of large declines, -8.30% and -9.21%, respectively.

• All regional indices showed negative returns for September with funds investing in the developed markets outperforming those investing in the emerging markets. Japan focused funds performed best (-1.22%) from the group of regional indices.

• Funds investing in the MENA region showed the smallest losses among emerging markets indices, posting -3.78% for the month while Russia funds fell significantly, -13.60%. EM fixed income funds continued to outperform EM equity funds, -2.95% vs. -8.36% in September. EM fixed income is the only regional classification to have a positive YTD return (+0.16%).

• Europe focused funds slid again in September, -1.56%, as the region continues to suffer from the sovereign debt crisis and sluggish regional economies; the group is -7.06% YTD.

• Credit strategies (-0.73%) again outperformed equity strategies (-3.93%) and funds investing in sovereign/municipal credit returned +1.47%. Sector specific equity funds, again, showed the greatest downside in September. The HFN Short Bias Index posted its fifth consecutive positive month of performance, +9.16% in September and +14.27% YTD.

(1) Early estimates are based on funds reporting September returns as of October 12th, 2011. Performance has a tendency to drift lower as more funds report. Asset estimates may drift lower, but have not shown a consistent tendency to do so.

The full eVestment / HFN September report, to be released in the third week of October, will provide details on high water marks and asset flows by strategy and region.

(press release)

BG

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. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  2. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  3. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  4. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real

  5. Opalesque Exclusive: $1bn hedge fund club grows to 668 managers, continues to dominate (Part One)[more]

    Komfie Manalo, Opalesque Asia: Despite an underwhelming 2015 and a slow start to 2016 in terms of performance, one group of managers that continues to dominate the assets of the hedge fund industry is the so called $1bn club – hedge fund managers with at least $1bn in assets under management (AU