Thu, Jun 21, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI Emerging Markets Index leads hedge fund industry with +4.4% return in January, top gains from Russia, Latin America

Friday, February 24, 2012
Opalesque Industry Update – Emerging Markets hedge funds led broad-based performance gains across the global hedge fund industry to start 2012, with the HFRI Emerging Markets (Total) Index gaining +4.4 percent for the month of January, as reported by HFR today with the most recent release of the Emerging Markets Hedge Fund Industry Report and Database. Prior to January gains, Emerging Market hedge funds concluded a challenging year in 2011, posting an average decline of -13.8 percent, the 3rd worst calendar year since 1990.

January gains nearly matched similar gains to start 4Q11, when the HFRI EM Index gained +4.7 percent in October, and marked the 9th time since the conclusion of the Financial Crisis of 2008 that EM hedge fund performance has exceeded 4 percent in a month. The HFRI Russia/Eastern Europe Index gained +5.9 percent in January, following a decline of -18.5 percent in 2011. Similarly, the HFRI Latin America Index gained 6.0 percent in January after declining by -10.4 percent in 2011. The HFRX MENA Index and HFRI Asia ex-Japan Index gained +3.4 and +4.0 percent, respectively, in January, after having declined -11.7 and -18.0 percent in 2011.

The moderate pace of asset growth and investor inflows into Emerging Markets hedge funds mirrored the caution seen across the broader global hedge fund industry in 2011. Investors withdrew $2.2 billion from EM hedge funds in 4Q11, the 2nd consecutive quarterly net outflow; however, as a result of a strong performance-based contributions, concentrated in several of the largest EM managers, hedge fund capital invested in Emerging Markets increased by over $2 billion in 4Q11, reaching $117.8 billion globally. For the full year 2011, hedge fund capital invested in Emerging Markets grew by $3.5 billion, an increase of 3.0 percent, on a modest net capital inflow of just $200 million, and was the first calendar year since 2007 in which EM hedge funds have experienced a net capital inflow.

The strongest strategy area for capital growth in EM hedge funds was Equity Hedge strategies, which experienced $1.7 billion in inflows and $8.7 billion in performance-based asset growth for 2011. By specific regional focus, Emerging Asia experienced the strongest net inflows for 2011, with these receiving $1.4 billion in net new capital.

“Global investors exhibited a level of risk aversion toward EM hedge funds similar to that of the broader hedge fund industry in 2011, but early 2012 performance may constitute a crucial inflection point for investor risk tolerance,” stated Kenneth J. Heinz, President of HFR. “Hedge funds investing in Emerging Markets have outperformed both the broader hedge fund industry and developed market equities since 1990, while at the same time, EM hedge funds have evolved to offer more sophisticated, transparent and institutional products which are likely to contribute to capital growth in coming years.”

(press release)

HFR (Hedge Fund Research, Inc.) is the global leader in the alternative investment industry. Established in 1992, HFR specializes in the areas of indexation and analysis of hedge funds. HFR Database, the most comprehensive resource available for hedge fund investors, includes fund-level detail on historical performance and assets, as well as firm characteristics on both the broadest and most influential hedge fund managers. HFR has developed the industry’s most detailed fund classification system, enabling granular and specific queries for relative performance measurement, peer group analysis and benchmarking. HFR produces over 100 indices of hedge fund performance ranging from industry-aggregate levels down to specific, niche areas of sub-strategy and regional investment focus. With performance dating back to 1990, the HFRI Fund Weighted Composite Index is the industry’s most widely used standard benchmark of hedge fund performance globally. The HFR suite of Analysis Products leverages the HFR Database to provide detailed, current, comprehensive and relevant aggregate reference points on all facets of the hedge fund industry. HFR also offers consulting services for clients seeking customized top-level or more nuanced analysis. www.hedgefundresearch.com

BG

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. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  2. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  3. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv

  4. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp

  5. CalPERS defines new private equity policy with more direct investments[more]

    Dr. Ashby Monk, the executive director of the Stanford Global Projects Center and one of the world's leading experts on design and governance for institutional investors, told the CalPERS Investment Committee: "Private equity is a tough business for funds - in large part because you need it