Wed, Jul 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI Fund Weighted Composite Index up +2.43% in October (-3.5% YTD)

Tuesday, November 08, 2011

Kenneth J. Heinz
Opalesque Industry Update - Hedge funds posted the strongest monthly gains thus far in 2011, with the HFRI Fund Weighted Composite Index gaining +2.43 percent for October. The gain snaps a two-month decline and follows a 3Q drop of -6.5 percent, the fourth worst calendar quarter performance in history.

Equity Hedge strategies had the largest positive contribution to index performance in the month, with the HFRI Equity Hedge Index gaining +5.2 percent. This was the best single-month gain for Equity Hedge since May 2009 and snapped a volatile, 5-month decline for the strategy. Within Equity Hedge sub-strategies, the HFRI EH: Energy/Basic Materials rose +8.1 percent, while the HFRI EH: Technology/Healthcare Index gained +3.9 percent; the HFRI Emerging Markets Index gained +5.0%, partially reversing losses from the previous two months.

Event Driven funds also posted gains on improved equity markets, and tightening credit and M&A spreads, with the HFRI Event Driven Index up +2.7 percent, the best monthly gain in 2011, with positive contributions from Special Situations and Activist funds. Relative Value Arbitrage funds posted a gain of +1.33 percent, with gains in Corporate Fixed Income; for 2011, the HFRI Relative Value Index has gained +0.94 through October.

Macro funds posted declines on trend reversals, despite positive contributions from Commodity exposures and Discretionary managers. The HFRI Macro Index declined -1.4 percent in October, while the HFRI Macro: Systematic Diversified Index fell -3.5 percent, wiping out YTD gains with the worst month since July 2008.

"Hedge funds posted gains for October concentrated in Equity Hedge and Event Driven strategies, as managers adjusted exposures intra-month in response to rapidly improving condition across equity and credit markets," said Kenneth J. Heinz, President of HFR. "The primary focus for managers, as well as the primary catalyst for financial markets, continues to be the European sovereign debt crisis, with the outlook having improved despite the continued likelihood of volatility and unpredictable political developments. In the current environment, fund managers are looking to maintain tactical flexibility to opportunistically adjust exposure to dynamic market conditions, while maintaining core exposures to constructive portfolio themes across equity, credit, commodity and currency markets." Full press release: Source

(press release)

PD

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: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  4. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New

  5. SWFs - Abu Dhabi wealth fund says long-term investment gains fell[more]

    From Bloomberg.com: The Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, said its long-term gains dropped in 2015. The fund’s 20-year annual rate of return slowed to 6.5 percent at the end of 2015, from 7.4 percent a year earlier, it said in its annual review. Over