Fri, Dec 15, 2017
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. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From Bloomberg.com: A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  3. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  4. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  5. ...And Finally - The ongoing gun saga in the U.S.[more]

    From Newsoftheweird.com: As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c