Wed, Aug 31, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI Fund Weighted Composite Index declines -0.36% in April (+4.42% YTD)

Tuesday, May 08, 2012
Opalesque Industry Update - Hedge funds posted a narrow decline to begin 2Q12, with the HFRI Fund Weighted Composite Index declining by -0.36 percent in April, 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 April decline follows a 1Q12 gain of +4.79 percent, the best 1Q performance since 2006, and concludes a month dominated by the resurgence of investor concern with regard to the European sovereign debt crisis and uncertainty surrounding the outcome and implications of European elections. Total hedge fund capital increased to a record level of $2.13 Trillion in 1Q12 on performance and continuing investor inflows.

Hedge fund performance by strategy was mixed for April, underscoring the varied themes and drivers of performance throughout the month. The HFRI Relative Value Arbitrage Index posted a gain of +0.21 percent, the fifth consecutive monthly gain for this index, with positive contributions from Fixed Income Arbitrage, Volatility Arbitrage and Asset Backed exposures. Equity Hedge was the weakest area of performance, posting a decline of -0.57 percent, the first monthly decline for this index in 2012, paring the YTD gain for the HFRI Equity Hedge Index to +6.33 percent.

Macro strategies also posted a decline for April, with the HFRI Macro Index declining by -0.35 percent, as declines across Systematic (CTA) and Discretionary strategies only partially offset gains in Active Trading funds. The HFRI Event Driven Index posted a narrow decline of -0.16 percent, also the first monthly decline of 2012, as gains in Activist and Credit Arbitrage strategies were offset by losses in Distressed and Special Situations funds.

Funds of Hedge Funds posted a decline of -0.26 percent in April, also the first monthly decline of 2012, but the second consecutive month in which the HFRI FOF Index has outperformed the single managers in the HFRI Fund Weighted Composite Index. Despite modest redemptions in 1Q12, assets invested in hedge funds via FOF increased to $644 Billion as a result of positive performance in 1Q12.

"April hedge fund performance marked a transition from the equity beta driven gains in the first quarter to an environment more similar to the risk-averse environment which dominated 2011," stated Kenneth J. Heinz, President of HFR. "While the transition has contributed to modest declines in Equity and Macro strategies in April, many funds which have maintained conservative positioning are now in the process of adjusting exposures through the current environment. Hedge fund gains throughout 2012 are likely to continue across a more diverse continuum of assets and strategies, with these complementing core and tactical equity markets exposures industry wide."...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. The Big Picture: Water is single largest environmental investment opportunity[more]

    Benedicte Gravrand, Opalesque Geneva: Water, the world’s most precious and undervalued commodity, is set to lead the socially and environmentally responsible investment themes. This is according to specialist fund manager Thomas Schumann. His firm,

  2. Commodities - Hedge funds pile into bullish bets on U.S. crude by most on record, Rig count steady, hedge funds dump short contracts on 63 million barrels, Hedge funds bail on Copper as Goldman predicts ‘supply storm’, Hedge funds pile up bets against sterling[more]

    Hedge funds pile into bullish bets on U.S. crude by most on record From BRecorder.com: Hedge funds and other speculators raised their bullish bets on US crude oil in the past week by the most on record fuelled by speculation that Organization of the Petroleum Exporting Countries will agr

  3. Investing - U.S. hedge fund Marathon makes Brexit bet on European property, Hedge funds love Liberty and John Malone, DE Shaw could bid for control over TerraForm Power, New York hedge fund increases stake in Tronc as sale talks continue, Don't wait too long to check this +20% value fund's ideas[more]

    U.S. hedge fund Marathon makes Brexit bet on European property From FT.com: Marathon, a $13bn US hedge fund, is building a big Brexit trade, increasing its investments in property across Ireland, France, Germany and the Netherlands, in a bet that they will be among the big beneficiaries

  4. Opalesque Exclusive: Investors struggle to identify the better performing hedge funds[more]

    Komfie Manalo, Opalesque Asia: Fund managers and investors believe that performance is one of the major factors driving change in the hedge fund industry, a Preqin survey showed in its latest Hedge Fund Spotlight. Preqin said that the disappoin

  5. …And Finally - Baby born on Cebu Pacific airplane gets 1 million air miles[more]

    From CNN.com: Here's one kid who'll probably learn to fly before she can crawl. After being born four hours into a flight from Dubai to Manila, baby girl Haven has been gifted 1 million air mile points. Haven's mom went into labor more than five weeks early while flying on an aircraft op