Sun, Sep 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Composite Eurekahedge Hedge Fund Index up 1.1% (est.), 13.1% YTD, hedge funds attract $4.5bn in August

Tuesday, September 08, 2009
Opalesque Industry Updates -Early reporting funds suggest another month of consistent returns for hedge funds, with the composite Eurekahedge Hedge Fund Index up 1.1% in August and 13.1% YTD. Managers achieved positive returns from most asset classes during the month – equities globally (China being a notable exception) ended the month positive; the MSCI AC World Index rose 3.4%. In the fixed income space, government bonds moved upwards despite persistent strength in risk appetites, while the commodity markets also afforded managers with profitable opportunities during the month.

- August marks the 6th consecutive month of positive returns for hedge funds (up 13.1% YTD); hedge funds up 2.6% for the last 12 months, while the MSCI AC World Index is down 18.5% for the same period.

- Net inflows of US$4.5 billions in August, with over 50% of the reporting funds attracting capital during the month.

- Over 300 new launches and 400 fund closures confirmed by Eurekahedge so far this year.

Regional Indices
Most geographical investment mandates recorded gains averaging close to or over 2% during August, with European managers (2.6%) delivering the best gains, on average. Managers in the region benefited partly from upward movement in regional equities (MSCI Europe Index rose 6% in August, with developed markets outperforming emerging market indices), and from bets in favour of government bonds. North American and Latin American funds ended the month with gains averaging 1.8% and 2.1%.

Asian managers, on the other hand, underperformed most others, with Japan-specific funds up 0.7% and their Asia ex-Japan-investing counterparts down 1.1%. The losses across Asia ex-Japan were mainly an outcome of the marked underperformance of regional equity markets; equities in China, Hong Kong and Taiwan lost 21.8%, 4.1% and 3.6% respectively. Significant losses from allocations to the region also go some way in explaining the underperformance of broader emerging market-investing funds, which ended the month flat to positive.

Strategy Indices
While all strategic investment mandates recorded positive returns, on average, CTAs and macro managers (up 0.5% and 0.6% respectively) continued to underperform those employing other strategies. This was mainly owing to choppy movement in the FX space, which negatively impacted managers allocating to the asset class. Furthermore, a huge downturn in natural gas prices (down nearly 20%) went some way in eroding gains during the month.

Most of the other strategies were up between 1% and 2% through August. Distressed debt managers, however, were a marked exception, recording returns averaging an impressive 6.2%. This was largely owing to the outstanding performance of a few emerging market-focused managers of the strategy, which positively skewed the strategy’s index.

Performance tables: Source.


Be

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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco

  5. Opalesque Exclusive: Modern investor tools (2): A platform that does the job for you[more]

    Benedicte Gravrand, Opalesque Geneva: A new series on technology providers that assist asset allocators. There is disruption in the investor part of the world of hedge funds, coming from platforms that can replace traditionally-run search and analysis. Here is one of them. L