Sun, Aug 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hennessee reports hedge funds up 1.97% in September, 8.57% year to date

Thursday, October 10, 2013
Opalesque Industry Update - Hennessee Group LLC announced that the Hennessee Hedge Fund Index increased +1.97% in September (+8.57% YTD), while the S&P 500 gained +2.97% (+17.90% YTD), the Dow Jones Industrial Average increased +2.16% (+15.46% YTD), and the NASDAQ Composite Index jumped +5.06% (+24.90% YTD). Bonds were also positive on the month, as the Barclays Aggregate Bond Index gained +0.95% (-1.88% YTD).

“Hedge funds generated solid performance in September as assets rallied on reduced Syrian tensions and assurances that the fed would not be tapering in September.” commented Charles Gradante, Co-Founder of Hennessee Group LLC. “The Hennessee Hedge Fund Index was up 1.97% as managers added to net long exposures on the news. Healthcare and Biotech managers led the month, up +4.72% and are leading all hedge fund strategies and the SP 500 for the Year-to-date up +25.89%.”

Equity long/short hedge funds were positive in September, as the Hennessee Long/Short Equity Index gained +2.62% (+13.46% YTD). The best performing sectors were industrials (+5.48%), consumer discretionary (+5.29%), and materials (+4.16%). The underperforming sectors were telecommunication services (-0.63%), utilities (+0.74%) and consumer staples (+0.96%). The market rallied coming off a poor August, aided by the Fed’s decision to not taper its bond purchases and reduced global tensions.

“Long/Short Equity managers were up +2.62% (+13.46% YTD) having a good month and year considering an average 50% net long exposure.” commented Lee Hennessee, Co-Founder of Hennessee Group LLC. “Despite being whip sawed by politics throughout the year, these managers have generated solid returns on the short side as correlations among stocks are reverting to more normal fundamental relationships. Their biggest concerns are complacency in markets and the likelihood of excessive leverage in global equity markets due to monetary easing.”

The Hennessee Arbitrage/Event Driven Index gained -0.20% in September (+5.54% YTD). The Barclays Aggregate Bond Index gained 0.95% (-1.88% YTD) as interest rates decreased in September, aided by the Fed’s decision to continue its monthly bond purchases and record corporate bond issuance in the US. High yield also increased as the Merrill Lynch High Yield Master II Index gained +0.99% (+3.79% YTD). High yield spreads increased slightly, gaining 7 basis points to end the month 483 basis points over treasuries and investor’s appetite for risk increased. The Hennessee Distressed Index climbed +2.57% in September (+11.13% YTD). Distressed portfolios were helped by both a strong equity market and positive restructurings. The Hennessee Merger Arbitrage Index gained +1.29% in September (+6.03% YTD). Managers posted gains as deal spreads tightened and markets rallied. The Hennessee Convertible Arbitrage Index lost -0.66% in September (+4.84% YTD).

“Managers in emerging markets are concerned about the impact a steepening US yield curve and strong dollar will have on dollar denominated emerging market debt as global growth is slowing and emerging market inflation continues to threaten economies.” added Charles Gradante.

The Hennessee Global/Macro Index gained +1.86% in September (+3.25% YTD). Macro managers experienced gains as Europe, Asia, emerging markets and currencies rallied. The MSCI EAFE Index jumped +7.12% (+13.36% YTD). The Hennessee International Index gained +0.88% (+5.52%). Emerging markets were also positive, as the MSCI Emerging Market Index gained +6.23% (-6.42% YTD), while, the Hennessee Emerging Market Index gained +2.05% (+3.17% YTD). The Hennessee Macro Index increased +0.85% for the month of September (-1.22% YTD).

“Macro managers continue to speculate that the Fed is managing the strength of the dollar through market operations including shorting gold.” reported Mr. Gradante. “Macro funds benefited from low cross asset correlation posting a gain of 1.86% in September.”

Fixed income managers gained in September as bond yields decreased for the month with the 10-Year U.S. Treasury ending the month at 2.61%, down from 2.78% in August. Commodities posted declines for the month, led by platinum, silver, gold and oil. The U.S. Dollar continued its slide against major currencies ending September -2.27%. The Euro returned +2.31% for September, while the Japanese Yen increased a modest 0.10%. Gold, silver and platinum all posted significant losses for the month, shedding -4.75%, -7.75% and -7.78% for September, respectively. Crude oil reversed course, losing -4.44% for the month as Mid-East tensions subsided. Natural gas lost -0.59% for the month.

Press release

bc

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. Commodities - Commodity hedge funds lose most in three years as rout deepens, Funds bet on Shell deal as oil prices plunge[more]

    Commodity hedge funds lose most in three years as rout deepens From Bloomberg.com: Hedge funds betting on commodities lost the most in almost three years in July as the price-rout deepened. Funds lost money for a third month, according to the Newedge Commodity Trading Index, which was re

  2. Investing - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  3. Activist News - Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping, Meet Europe's best activist investor[more]

    Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping From Businessinsider.com: Carl Icahn has picked his next target: Freeport-McMoRan. Icahn and a group of other investors have snapped up an 8.46% stake in mining company Freeport-McMoRan, according to a j

  4. North America - Hedge fund manager Ray Dalio’s challenge to the Fed[more]

    From Newyorker.com: For some reason, Janet Yellen, the chair of the Federal Reserve, decided to skip this year’s annual Fed conference in Jackson Hole, where monetary policymakers from the United States and abroad get together with some prominent academics to discuss the big issues of the moment. Th

  5. JTC acquires Kleinwort Benson’s fund administration business[more]

    Bailey McCann, Opalesque New York: JTC has completed the acquisition of Kleinwort Benson’s fund administration business, boosting assets under administration (AuA) to $56 billion. Kleinwort Benson is based in the Channel Islands, South Africa. The transaction, which relates to the whole of K

 

banner