Sat, Jun 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge: Hedge funds up 2.63% during 3Q 2012 (+4.23% YTD)

Tuesday, October 09, 2012
Opalesque Industry Update: September was another winning month for hedge funds as the sector posted its third consecutive month of positive returns. The Eurekahedge Hedge Fund Index was up 1.02%1 in September and 2.63% dr 3Q 2012 while September year-to-date the index is up 4.23%. Global markets rallied strongly during the month on the back of monetary easing steps taken by governments - the MSCI World Index was up by 2.29%2 during the month.

Key takeaways for the month of September 2012:

  • Hedge funds witnessed three consecutive months of positive returns — up 2.63% in 3Q 2012.
  • The Eurekahedge Hedge Fund Index is up 4.23% year-to-date with over 1000 funds up more than 10% and 500 funds up more than 15%.
  • Asia ex-Japan managers gained 4.11% in September with Indian hedge funds delivering the best returns of 8.02%.
  • The Mizuho-Eurekahedge Asia ex-Japan Index rose 5.70%3 in September.
  • Launch activity picked up with nearly 200 funds launched in 3Q 2012.
  • All regions posted positive asset flows for August while early results indicated strong allocation activity in September.

Regional Indices

All regional mandates posted positive returns for the month on the back of rallies in the underlying markets. The month started off on a bullish note with signs of stabilising global economic growth and prospects of additional quantitative easing dominating the market sentiment. The rallies were driven by the opinion that the ECB's bond buying program and QE3 announcement by the US Federal Reserve reduced the risk of a prolonged economic slowdown.

Asia ex-Japan managers posted the best returns for September, gaining 4.11% as regional market indices witnessed sustained and steady gains during the month. Managers made good on their long calls in emerging markets with exposure to South East Asia being especially profitable to portfolios - as the managers benefitted from gains in equity markets as well as strengthening regional currencies.

European and North American hedge funds also posted healthy gains for the month with returns of 1.12% and 1.37% respectively. The MSCI Europe Index was up 1.30% with equity markets holding on to their post-ECB announcement gains through the month. Some managers posted losses from long positions in European debt and short Euro holdings.

Strategy Indices

With the exception of CTA/managed futures, all strategic indices delivered positive returns in September with long/short equity managers posting the strongest returns of 1.99%. As many equity investing managers had expected some sort of policy action over the last two months, they had built their bullish positions into portfolios and were therefore able to capture most of the upside from equity markets. Among CTA/managed futures funds, trend-following strategies were mostly loss-making for the month, while short-term quantitative traders also witnessed a lacklustre month - the Eurekahedge CTA/Managed Futures Hedge Fund Index was down 0.74% during the month.

Eurekahedge

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. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  2. 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

  3. 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

  4. 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

  5. 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