Sat, Sep 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds returned 0.69% in November (5.97% YTD) led by credit and volatility strategies – eVestment HFN

Friday, December 07, 2012
Opalesque Industry Update - Hedge funds returned an average of 0.69% in November 2012, retuning back to positive territory after October’s loss snapped its four month upswing. The majority of early reporting funds posted gains, but there were segmented losses across market exposures and strategies.

Credit funds posted their tenth positive month of the year in November, however flow data from October showed the group experienced only its third month of net redemptions this year and largest since January, a signal investors may becoming wary of crowded credit markets having enjoyed over two years of strong relative returns.

Currently reporting equity strategies have outpaced the S&P 500 TR for the second consecutive month and for the first time during a positive month for the benchmark in more than a year. Small cap, technology and energy exposures produced negative returns in November, but it appears aggregated exposures were not weighted heavily enough towards those markets to bring the group down.

The US Dollar Index crept higher during the month, but that did not prevent FX strategies from posting another monthly loss as the Euro strengthened against the USD. Exposures and strategies are diverse across FX funds, but Euro weakness appears to be a root theme across the group as the two best months for FX strategies in 2012 were May and July, coinciding with the Euro’s largest monthly declines.

Emerging market funds were again positive during the month, with exposure to China again being the lone exception. EM funds are among the best in the industry in 2012, despite returns generated from China focused funds being among the industry’s worst.

Macro fund performance appears to have diverged a bit from managed futures in November with the latter likely suffering similar exposure issues as FX funds.

Volatility strategies have not received much attention this year, but produced some of the industry’s best returns. November was their tenth positive month in 2012 and the group has shown an ability to manage its namesake during the few largely negative market environments this year.

(press release)

eVestment/HFN www.hedgefund.net

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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali