Thu, Jul 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge Hedge Fund Index was down -0.65% in November (-3.61 YTD)

Friday, December 09, 2011
Opalesque Industry Update - The Eurekahedge Hedge Fund Index was down 0.65%1 in November amid larger declines in global markets. Risk aversion remained high during the month with the Euro zone debt crisis continuing to dominate investor sentiment. Although the month started with gains in equity markets, mid-month trend reversals and a strong rally at month’s end made it a tough investment environment. The MSCI World Index2 witnessed losses of 3.22%.

Key highlights for November:

  • CTA/managed futures hedge funds gained 0.71% in November
  • The Mizuho-Eurekahedge Top 100 Index remained in the black November YTD; up 2.66%
  • Early reports indicated net positive asset flows to hedge funds in November 2011
  • Hedge funds outperformed underlying markets by 2.6% in November

Most regional indices finished the month in the red, with the exception of North American hedge funds which were flat to slightly positive. After the strong rallies in October, a number of North American managers had indicated low net exposures for November to protect gains from the previous month. This cautious positioning helped the managers during most of the month while the last day rally, driven by the surprise move by central banks to provide liquidity, had mixed results. The S&P 500 declined 0.51% during the month.

Among other regions, Latin American and European hedge funds fared better than their Asian counterparts, with returns of -0.27% and -0.48% respectively. Similar to North American hedge funds, European hedge funds maintained low net exposures through the month, helping managers to avoid significant losses in a highly volatile environment. Early sell-offs were triggered in the markets by the possibility of a Greek referendum. November witnessed some significant events such as changes in the Greek and Italian governments, and failure of the ‘super-committee’ to reach an agreement on budget cuts, which drove the market swings. The MSCI Europe Index3 was down 4.96%.

Strategy Indices
In terms of strategic mandates, most strategies were loss making for the month. The best performance was delivered by the Eurekahedge CTA/Managed Futures Hedge Fund Index – up 0.71%. Trend followers posted the largest gains, with FX trades (such as long dollar positions) yielding significant profits for the managers. Long exposures to the Hang Seng Index negated some of the profits however. Short-term systematic traders also finished the month with small gains on the back of short positions in bonds. Macro investing hedge funds made gains through short exposure commodities and posted a positive return of 0.17% for November. Among other strategies, hedge funds investing in riskier assets witnessed the largest losses; the Eurekahedge Distressed Debt Hedge Fund Index was down 1.75% while the Eurekahedge Long/Short Equities Index lost 1.77% during the month.

(press release)

Full press release and performance table: Source
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: Kyria Capital Management bets on women hedge fund managers[more]

    Bailey McCann, Opalesque New York: As hedge fund assets top $3 trillion, and long/short strategies get more crowded than ever, with every manager hunting for even the tiniest bit of alpha, a new firm has emerged that claims its own edge – women. A recent Rothstein Kass study showed women-owned a

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  4. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  5. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by