Sun, Apr 23, 2017
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. Opalesque Exclusive: Carden Capital bets on volatility[more]

    Bailey McCann, Opalesque New York for New Managers: Machine driven strategies are having a bit of a moment in the hedge fund world right now. Systematic funds have outperformed other strategies at a time when all ey

  2. Sprott AM to sell Canadian diversified fund business to management-led group[more]

    Komfie Manalo, Opalesque Asia: Toronto-based asset management company Sprott Asset Management LP (SAM) has entered into an agreement to sell its Canadian diversified fund business to a management-led group. Under the deal, the new group will have

  3. Investing - These hedge funds (and Madeleine Albright) are betting on a debt crisis, Hedge funds are upping their bets on the death of the traditional retailer, $20bn hedge fund recaps Corizon[more]

    These hedge funds (and Madeleine Albright) are betting on a debt crisis From Yahoo.com: There could be a big debt crisis brewing in places like China, India, Latin America and Africa -- and a growing number of investors are amassing war chests to cash in on the distress. Albright Capital

  4. Universities looking to defend endowments from Republican tax plan[more]

    From PIOnline.com: Some of the richest U.S. colleges are pushing back against scrutiny by Congress over the tax-exempt status of university endowments. Lobbying disclosure forms show almost two dozen schools such as Princeton University, University of Notre Dame and Cornell University are including

  5. Activist News - GAM touts 'tangible results' of turnaround as activist fight hots up, Bill Ackman not done with Herbalife, says his fight could get legs in May, Activist hedge fund CIAM says Euro Disney's buyout offer not fair for minority investors[more]

    GAM touts 'tangible results' of turnaround as activist fight hots up From FNLondon.com: GAM, the Swiss asset manager at the center of an attempted boardroom putsch by activist hedge fund RBR Capital, said its first-quarter results amounted to "tangible" proof that its management's plan f