Opalesque Industry Update - Hedge funds compliant with UCITS posted a modest decline for April 2013, with the HFRU Hedge Fund Composite Index posting a narrow decline of -0.05%, with gains in Event Driven & Relative Value Arbitrage offset by declines in Equity Hedge & Macro strategies. |
• HFRU Relative Value Index posted a gain of +0.33% for April, the 11th consecutive monthly gain for the Index, with positive contributions from European fixed income, Japanese and European convertible exposure and Real Estate exposure.
• HFRU Event Driven Index posted a gain of +0.21% for April, with positive contributions from Asian M&A and Special Situations, hedged Emerging Markets ED exposure and Global capital structure arbitrage exposures.
• HFRU Macro Index posted a narrow decline of -0.06% for April, with positive contributions from trend following, systematic CTA Macro strategies offset by Discretionary Macro strategies with exposure to Commodities & Gold. UCITS Currency strategies produced mixed performance for the month.
• HFRU Equity Hedge Index posted a decline of -0.21% for April, the first decline for the Index in 10 months, as positive contributions from exposure to Financials and Japanese & European equities were offset by declines in Russian & Latin American equities and commodity-sensitive exposures.
Global financial markets recovered from a sharp intra-month commodity decline, as US large cap equities ended the month of April at record highs once again. European equities were led by Italian equities, which posted a large gain on optimism over recent political developments; equities in France, Spain, Netherlands, Germany and Switzerland also gained. Global equity markets were mixed for the month, with gains in US large cap, Technology, Healthcare and Financials partially offset by weakness in small cap, Energy and commodity sensitive exposures. The Nikkei again led gains for Asian equities, Australia, Philippines & India also gained, while China & Korea posted declines. Commodities fell sharply for the month, with Gold posting the largest 2 day decline in over 30 years; Silver, Platinum and Oil also posted sharp declines. Agricultural commodities were mixed with sharp gains in Hogs and Soybeans offset by declines in Lumber & Rice. US & European bond yields posted declines, led by the sharp decline in Italian bond yields; US yields fell across most maturities, as yields also declined in France, Spain, Netherlands, Germany and Switzerland. The US dollar gained to a new 4 year high against the Japanese Yen on expectations of continued Bank of Japan stimulus, although the US Dollar declined against the Pound, Euro & Swiss Franc. Global M&A activity continued with contributions from transactions in FirstMerit/Citizens Republic Bancorp, KKR/Gardner Denver, Renasant/First M&F, Liberty Global/Virgin Media and Berkshire/Heinz.
The HFRU Indices are published on a daily basis and comprise the most comprehensive benchmarks of UCITS hedge fund performance available. HFRU Indices are representative of the complete universe of hedge funds compliant with UCITS guidelines, and include four strategy indices (Equity Hedge, Event Driven, Macro and Relative Value Arbitrage) and an aggregate HFRU Hedge Fund Composite Index. WWW.HFRU.EU
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