Wed, Oct 7, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

GAM reports that March was an 'encouraging month for hedge funds'

Wednesday, April 03, 2013
Opalesque Industry Update - GAM's Hedge Fund Performance Update finds that several trends in risk markets continued in March with positive performance in equities, notably in the US and Japan, continued strength in the US dollar and another month of weakening in the Japanese yen.

Hedge funds enjoyed the third consecutive month of positive performance for the year, with the HFRX Global Hedge Fund index up 0.7% for March and up 3.1% for the quarter. Gains were led by equity-centric strategies, with the HFRX strategy indices for event-driven managers and equity hedge managers up 5.3% and 5.1%, respectively for the quarter. Global macro and CTA strategies continued to deliver mixed results with some negative global macro results offsetting some strongly performing CTA managers to deliver a flat net result for the quarter for the HFRX Macro/CTA index. Relative value managers started the quarter strongly, but were subsequently only marginally positive in February and March, with the HFRX Relative Value index ending the quarter up 1.7%.

Anthony Lawler, Portfolio Manager at GAM, said: “March was another encouraging month for hedge funds with broad-based positive attribution. Many trend following CTA managers had a positive month with performance coming from long positions in the US dollar, Australian dollar, US and Japanese equities, and short positions in the Japanese yen. Equity hedge and event driven managers continued to benefit from exposure to developed market equities and to certain corporate activities and balance sheet restructurings. Within relative value and credit strategies, after a strong January, we saw continued consolidation in credit with generally small but positive contribution from managers in this space.”

“The Cyprus crisis did not cause material broad-based pain for hedge funds in March. However there is concern that this crisis is yet another symptom of the unresolved issues in the European Union, and as a result managers remain generally under-exposed to Europe. More globally, hedge fund managers are aware of the seasonal weakness in equities that we often see in a second quarter, especially after a strong start to the year. That said, equity hedge managers are generally positioned for a continuation of the strength in equities in the US and Japan, while remaining underexposed to European-centric names. In other strategies, managers continue to be positive on the opportunities in currencies and credit from both the long and the short side. Overall many managers enter the second quarter with gross exposure towards the upper end of their respective typical ranges.”

Press release


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. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with

  4. A hedge fund strategy that seems to have fizzled[more]

    From The hedge fund strategy that has attracted the most money this year is on course to cause some of the biggest losses for investors, in the latest example of the dangers of going with the crowd. Institutions and individuals have piled an estimated $20 billion (Dh73 billion) into ma

  5. Hedge fund Barnegat survives September’s market selloff[more]

    Komfie Manalo, Opalesque Asia: Bob Treue’s $679 million Barnegat Fund proved resilient after another month of market letdown as the hedge fund gained 2.2% last month, bringing its year-to-date gains to 2.8%. Treue said in his monthly report to i