Fri, Nov 28, 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. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  4. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  5. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed