Opalesque Industry Update - UCITS compliant Hedge funds posted gains through mid-October, with the HFRU Hedge Fund Composite Index gaining +0.48% through mid-October, 2013. |
• HFRU Equity Hedge Index posted a gain of +0.88% through mid-October, with positive contributions from Emerging Markets with gains concentrated in India, Brazil, China, Emerging Europe and Turkey equity offset by declines in Western Europe and Renewable Energy exposure.
• HFRU Event Driven Index posted a gain of +0.47% through mid-October, with positive contributions from European and Asian Equity Special Situations, Merger Arbitrage strategies and Emerging Markets credit exposure.
• HFRU Relative Value Arbitrage Index posted a gain of +0.22% through mid-October, with gains in Multi-Strategy, Asset-Backed, Emerging Markets, Convertible Arbitrage and Real Estate strategies.
• HFRU Macro Index posted a gain of +0.16% through mid-October, with positive contributions from Emerging Market and Global Discretionary strategies which were offset by declines in Commodity Metals exposure.
Global equity markets posted gains through mid-October, recovering early month losses through mid-month as financial markets attempted to discount the impact of US fiscal budget impasse, including both the possibilities for resolution as well as the consequences of failure to resolve. Gains were steady across US caps and sectors, with leadership from Healthcare, Technology and Oil Services. European equities also posted gains led by Spain, Russia and Italy, while Asian equity gains were led by China, India and the Philippines; Emerging Markets were led by gains across the BRIC economies. US yield posted modest increase as some institutions reduced holdings for short dated treasuries on increased default risk, government bond yields were modestly higher across UK Gilts, France, German Bunds, though yields declined across Italy and Spain; though both were narrowly changed, high yield credit tightened while investment grade spreads widened through mid-month. The US dollar traded in a narrow range through mid-month, essentially unchanged against the Euro & Japanese Yen, gaining against the British Pound Sterling while falling against the Brazilian Real & Australian Dollar. Oil & Natural Gas gained through mid-month while Gold & Platinum declined. Agricultural commodities also traded in a narrow range with trading volumes low as a result of the US government shutdowns limiting the release of many reports, gains in Sugar were offset by declines in Lean Hogs.
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.