Mon, Jul 6, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds conclude challenging 2011; position for 2012

Monday, January 09, 2012

Kenneth J. Heinz
Opalesque Industry Update: Hedge funds concluded a challenging 2011 with a decline in December, as the HFRI Fund Weighted Composite Index declined by -0.18 percent, bringing full year 2011 performance to -4.8 percent, according to data released today by HFR (Hedge Fund Research, Inc.), the leading provider of data, indices and analysis of the global hedge fund industry. The decline for 2011 marks only the third calendar year decline since HFR’s index performance inception in 1990, but is the second decline in the last four years. Hedge funds produced a gain of +1.3 percent in 4Q11, following a sharp decline of -6.7 percent in the volatile 3Q; hedge funds gained +0.77 percent in 1H11.

Two of the four strategy areas ended 2011 with gains in December, including Macro (+0.16 percent) and Relative Value Arbitrage (+0.50 percent) strategies; Fixed Income-based Relative Value was the only strategy area of positive performance for full-year 2011, gaining +0.55 percent, while Macro declined by -3.6 percent. Event Driven posted a narrow decline of -0.01 percent in December and -2.65 percent for 2011.

Equity Hedge strategies were the weakest area of performance for both December and 2011, posting a decline of -0.66 percent in December, and concluding 2011 with a decline of -8.0 percent. Performance of Equity Hedge was undermined by weakness in Energy/Basic Materials, Emerging Markets and Fundamental Growth, which posted full-year declines of -16.75, -12.9 and -12.6 percent, respectively. Partially offsetting these declines, certain Equity Hedge sub-strategies posted 2011 gains, including Technology/Healthcare (+1.14 percent) and Short Bias (+1.0).

“Volatile and unpredictable market dynamics throughout the year created a challenging environment for hedge funds in 2011, with aggregate losses across currency, commodity, Emerging Markets and equity strategies related to the European currency and sovereign debt crisis,” stated Kenneth J. Heinz, President of HFR. “Risk-off trades dominated 2011, creating challenges for convergence oriented funds, while contributing to gains across fixed income and certain low net exposure hedged strategies. After a challenging 3Q, hedge funds adapted strategies to this continuing macro-volatility dynamic in 4Q in anticipation of this environment persisting into early 2012.”

Press Release

BM

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: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner