Thu, Apr 27, 2017
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. Opalesque Exclusive: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  3. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  4. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob