Thu, Apr 26, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Barclay Hedge Fund Index gains 3.25% in September, 20.05% YTD

Friday, October 16, 2009
Industry Updates – Hedge funds added 3.25% in September according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is now up 20.05% in 2009.

“This month’s gain of 3.25 percent is the strongest September return since 1997, when hedge funds rose 4.05 percent,” says Sol Waksman, founder and president of BarclayHedge.

“The rally in global equity prices continued to gain steam in October,” says Waksman. “Although the S&P 500 Index increased 3.73 percent, it was eclipsed by the performance of the MSCI BRIC Index which gained 10.14 percent.”

“Further confirmation of increased investor willingness to take on more risk in search of higher yields can be found in the fixed income sector where prices for lower rated credits continued to increase at a faster rate than investment grade. Prices for investment grade Aa rated credits increased 1.26 percent in October, while B rated US High Yield rallied 4.50 percent.”

Overall, 16 of Barclay’s 18 hedge fund indices gained ground in September, led by the Barclay Emerging Markets Index, which jumped 5.36%. The Distressed Securities Index gained 4.88%, Convertible Arbitrage was up 4.47%, Equity Long Bias gained 4.00%, the Event Driven Index was up 3.67%, and the Technology Index added 3.44%.

“Stock markets in Asia, South America, Eastern Europe and the Middle East are performing well at the moment, giving an edge to hedge fund managers who focus on these emerging markets,” says Waksman.

Through September, 13 of Barclay’s 18 hedge fund indices have double-digit returns in 2009. The Convertible Arbitrage Index leads the way with a 47.03% gain year-to-date, followed by Emerging Markets, which is up 36.81%. The Equity Long Bias Index has gained 25.30%, Healthcare & Biotechnology is up 25.11%, the Event Driven Index has gained 24.51%, Distressed Securities are up 22.58%, and Multi-Strategy has gained 21.13%.

“Market conditions have been highly favorable for arbitrageurs this year, pushing the Barclay Convertible Arbitrage Index into record territory,” says Waksman.

“This is turning out to be the best year for Convertible Arbitrage since we started tracking the sector in 1997.”

The Equity Short Bias Index dropped 2.79% in September, and is down 14.32% after three quarters.

“The stock market plunge in 2008 provided ideal conditions for short sellers, and the Equity Short Bias Index had a record year, gaining 40.91 percent,” says Waksman. “Now it appears the tide has turned. Shorting the market is the only losing hedge fund strategy thus far in 2009.”

The Barclay Fund of Funds Index gained 1.60% in September, and is up 8.68% year-to-date.

Click here to view five years of Barclay Hedge Fund Index data, or download 11 years of monthly data.

BarclayHedge (formerly The Barclay Group) was founded in 1985 and actively tracks more than 6,000 hedge funds, funds of hedge funds, and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.


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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its