Sun, Feb 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI Fund Weighted Composite Index up 1.1% in September (+4.7% YTD)

Monday, October 08, 2012
Opalesque Indsutry Update - Hedge funds posted their strongest monthly performance since February to conclude 3Q12, led by Equity Hedge strategies as investor sentiment improved on positive developments in the European banking and sovereign debt crisis, as well as US stimulus efforts, according to data released today by HFR, the leader in research, indexation and analysis of the global hedge fund industry. The broad-based HFRI Fund Weighted Composite Index gained +1.1 percent in September, the fourth consecutive monthly gain, ending 3Q up +2.9 percent and improving YTD performance to +4.7 percent. Fund of Hedge Funds also posted the best performance since February, with the HFRI Fund of Funds Composite Index gaining +0.8 percent.

September gains were led by equity-sensitive strategies as the HFRI Equity Hedge Index gained +1.94 percent, the fourth consecutive month of positive returns, with significant contribution to performance from both Fundamental Growth and Value strategies, as well as funds focused on Technology and Healthcare. Emerging Markets hedge funds produced the strongest industry performance, with the HFRI Emerging Markets Index posting a gain of +3.1 percent for the month.

Relative Value Arbitrage and Event Driven strategies also posted gains on continuation of strong M&A, credit and equity environments, with the HFRI Relative Value and Event Driven Indices gaining +1.3 and +1.1 percent, respectively. Despite the increase in yields, fixed income based Relative Value Arbitrage gains were driven by credit spread tightening, effective interest rate hedging and targeted purchases of fixed income securities; ED gains were broad-based across sub-strategies including Distressed, Activist and Special Situations. The HFRI Relative Value Index posted its ninth gain in the last ten months, with contributions from credit sensitive exposures; the HFRI FI: Asset Backed Index advanced +2.0 percent in September and leads all hedge fund strategies with a gain of +13.3 percent for the year.

Macro hedge funds detracted from industry wide gains on weakness in trend following and commodity exposures, with the HFRI Macro Index posting a decline of -0.26 percent; the September decline was the second consecutive monthly decline for Macro. Systematic Macro funds posted declines on short exposures to equities and commodity metals, as the HFRI Macro: Systematic/CTA Index posted a decline of -0.9 percent. Discretionary Macro and Currency focused strategies had positive contributions from positions concentrated in Dollar/Euro, global equities and short fixed income.

"Despite continued uncertainty, the global macro environment improved significantly in 3Q12 as reflected by rising equity markets, increasing investor risk tolerance, supportive financial market liquidity and enhanced hedge fund performance," stated Kenneth J. Heinz, President of HFR. "As a result, institutional investors which had historically maintained small or no allocation to hedge funds are currently exploring or proceeding with commitments to alternative assets as a prudent mechanism to reduce equity market volatility, enhance fixed income portfolio yields and increase the likelihood of achieving required return targets."

Full performance table: Source

fg

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: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  2. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  3. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl

  4. Europe - 1 trillion euro non-performing loans are clogging EU lending channels[more]

    From Centralbanking.com: As much as 1 trillion euro of non-performing loans (NPLs) are still clogging the lending channel in the European Union. An EU asset management company (AMC) could address market failures in the secondary market for NPLs as part of a suite of measures designed to tackle the b

  5. Investing - Hedge funds' novel approach: investing for longer at lower returns, U.S. hedge fund Delta Partners lifts stake in Bellamy's, Hedge funds stockpile cobalt, electric carmakers on battery alert, Facebook is racking up the likes among the world's biggest hedge funds, Einhorn affirms gold on Trump uncertainty[more]

    Hedge funds' novel approach: investing for longer at lower returns From FNLondon.com: Hedge funds are known for making short-term bets, dipping quickly in and out of markets to take advantage of swings in prices. But, under pressure to innovate, some big-name managers are looking at ways