Wed, Oct 26, 2016
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)


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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. 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