Sun, May 24, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge: Hedge funds end 7 month winning streak, down 1.47% (+2.47% YTD)

Tuesday, July 09, 2013
Opalesque Industry Update - Hedge funds recorded negative returns in June ending their seven month winning run, as global markets witnessed broad based declines during the month. The Eurekahedge Hedge Fund Index was down 1.47% in June (1), outperforming the MSCI World Index which lost by 3.10% during the month.

Key takeaways for the month of June 2013:

• Hedge funds witnessed first losing month of the year, down 1.47% in June 2013
• Japanese hedge funds outperformed underlying stocks, up by 0.15% in June and 17.38% year-to-date
• Launch activity picks up with more than 300 funds launched so far in the year
• Eurekahedge is currently tracking more than 500 funds that have delivered over 15% year-to-date and 250 funds that are up by over 20% year-to-date
• Distressed debt funds end 11-month winning run after gaining 21% from June 2012 to May 2013
• CTA/managed futures funds in negative territory for the year, down 1.35% year-to-date

Regional Indices

June witnessed a continuation of downside momentum from the end of May as markets reacted adversely to speculation about a slowdown in the FED’s bond buying operations. The S&P 500 index was down 1.50% while the FTSE100 and Hang Seng index were down 5.58% and 7.10% respectively. Asia ex-Japan markets were the worst hit as lacklustre manufacturing data from China continued the flow of dreary macroeconomic numbers from China. Japanese stocks proved to be more resilient compared to their counterparts - with the Nikkei 225 and Tokyo Topix down 0.71% and 0.17% respectively. Towards the end of the month, market reaction to the US Federal Reserve’s indicated framework was downplayed as both the scale and pace of the slowdown in asset repurchase is contingent upon the US economic recovery which is still far from complete. A further boost of confidence was added to the markets as the European Central Bank re-affirmed the continuation of its loose monetary policy.

All major hedge fund investment regions, with the exception of Japan, finished in negative territory for the month. The Eurekahedge Asia ex-Japan Hedge Fund Index saw the largest decline among all regional mandates, down by 4.63%. It still managed to outperform the underlying markets as the MSCI Asia Ex Japan Index dropped by 6.75% for the month. The seven month streak of positive returns for North American hedge funds also came to an end as the Eurekahedge North American Hedge Fund Index was down 0.10% (up 4.07% YTD), a significant outperformance to the S&P 500 which declined 1.50%. European hedge funds saw another month of dismal returns this year with the Eurekahedge European Hedge Fund Index down 1.16%. In contrast, the Eurekahedge Japan Hedge Fund Index was up 0.15% for the month, bringing its year-to-date returns at an enviable 17.38%. While Prime Minister Abe outlined the 3rd arrow of his economic policy, it did not do much to boost up the market and funds with low long exposures were the ones that performed well during the month while some managers with exposure to transport and industrials also reported gains.

Strategy Indices

All hedge fund strategies yielded negative returns in June. Multi-strategy hedge funds were the worst performer for the month with a loss of 2.20%, followed by long/short equities (down 1.66%) as the global equity markets witnessed broad-based declines. CTA/managed futures posted the second consecutive month of negative returns, down by 1.14% in June and 1.35% year-to-date. The S&P GSCI precious metals total return index fell 12.21% during the month while CTA managers also suffered losses in equity and bond futures.

(1) based on 37.82% of funds which have reported June 2013 returns as at 9 July 2013

Press release

Eurekahedge indices: www.eurekahedge.com/indices/hedgefundindices.asp

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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner