Sat, Nov 28, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRX Global Hedge Fund Index gains +1.72% in January

Friday, February 03, 2012
Opalesque Industry Update - Global equities posted strong gains to begin 2012 with leadership from Technology and Financials, as US economic data showed signs of improvement and sentiment improved with regard to clarity on resolution of the European sovereign debt crisis. The US Dollar declined against the Euro and Yen, while the US treasury curved steepened as longer dated yields rose. Credit tightened throughout the month while commodity metals rallied, despite a sharp decline in Natural Gas.

Hedge Funds posted their strongest gains since 2010, with the HFRX Global Hedge Fund Index gaining +1.72% for the month, while the HFRX Market Directional Index gained +1.88%.

The HFRX Event Driven Index posted a gain of +2.80%, its strongest performance since May '07, with positive contributions across all Event Driven strategies, concentrated in Distressed and Activist strategies. Corporate credit and M&A deal spreads tightened, despite the termination of the NYSE/Deutsche Borse transaction. The HFRX Distressed Index posted a gain of +3.10%, its strongest performance in 22 months, while the HFRX Special Situations Index posted a gain of +2.18% for the month. M&A activity continued with deals in the pharmaceutical and technology sectors, with the HFRX Merger Arbitrage Index gaining +0.51%.

The HFRX Equity Hedge Index gained +2.07%, the largest gain since December 2010, with gains concentrated in Energy/Basic Material, Financials and Technology/Healthcare sectors. Managers benefitted from improving conditions and reduced volatility in the equity markets; Fundamental Growth strategies posted gains from exposure to US small cap, Latin America and Asia ex-China, while Fundamental Value managers benefited from European positioning while Japanese exposure detracted. The HFRX Fundamental Growth Index and the HFRX Fundamental Value Index posted a gain of +2.11% and +0.96%, respectively, while Market neutral strategies had positive performance, with the HFRX Equity Market Neutral Index gaining +0.41%.

The HFRX Relative Value Arbitrage Index posted a gain of +1.72% for January, with gains across all Relative Value strategies. Tightening of yields spreads and improved equity markets favored convertible strategies, with the HFRX Convertible Arbitrage Index and the HFRX RVA Multi-Strategy Index gaining +2.13% and +1.59%, respectively. Fixed Income-Corporate strategies were also positive for the period, while Yield Alternative/Energy Infrastructure experienced declines.

The HFRX Macro/CTA Index gained +0.09% for the month, from positive contribution from fixed-income and agricultural commodities exposure, partially offset by declines in systematic diversified funds. Short-term systematic strategies declined while medium-term funds posted gains, with HFRX Systematic Diversified CTA Index posted a decline of -1.00% for the month. Discretionary global rates currency managers posted gains, while commodity strategies had mixed performance.

Comments reference performance figures as posted on February 3, 2012

(press release)

Full performance table here.


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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November