Wed, Jan 28, 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. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  2. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  3. Comment - Why invest in hedge funds if they don't outperform the market?[more]

    From Forbes.com: Hedge funds have always been a bit exotic and an enigma to some, but bottom line they are supposed to produce good returns using a range of strategies including global macro, event driven and relative value (arbitrage). And, sophisticated or high-net-worth individuals (HNWIs) could

  4. Owen Li 'truly sorry' for blowing up $100m of hedge fund’s assets[more]

    From CNBC.com: A hedge fund manager told clients he is "truly sorry" for losing virtually all their money. Owen Li, the founder of Canarsie Capital in New York, said Tuesday he had lost all but $200,000 of the firm's capital—down from the roughly $100 million it ran as of late March. "I take r

  5. Indices - Barclay CTA Index gains 7.71% in 2014; largest traders return 12.31% for the year, Wilshire Liquid Alternative Index family outperforms investable hedge fund index counterparts in 2014[more]

    Barclay CTA Index gains 7.71% in 2014; largest traders return 12.31% for the year The Barclay CTA Index compiled by BarclayHedge gained 7.71% in 2014. The Barclay BTOP50 Index, which measures performance of the largest CTAs, was up 12.31% in 2014. “The BTOP50 had a strong finish, e