Sat, Jan 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Greenwich Global Hedge Fund Index up 1% in December, 19.4% YTD

Wednesday, January 13, 2010
Opalesque Industry Updates - Hedge funds as measured by the Greenwich Global Hedge Fund Index (“GGHFI”) advanced during the month of December to close the year near all time highs. The GGHFI returned +0.97% while the Greenwich Composite Investable Index (“GI2”) advanced by +0.06% during the month, compared to global equity returns in the S&P 500 Total Return +1.93%, MSCI World Equity +1.69%, and FTSE 100 +4.28% equity indices. Yearto- date, the GGHFI and the GI2 returned +19.38% and +4.16%, respectively, while the S&P 500 Total Return, MSCI World Equity, and FTSE 100 Indices returned +26.45%, +26.96%, and +22.06%, correspondingly. 72% of constituent funds in the GGHFI ended the month with gains.

“The majority of hedge funds ended 2009 with excellent results. The average fund has traded near or above its high water mark of last year. Over a two-year period, the downside protection of hedge funds made them a substantially more rewarding investment than long-only funds and equity index products,” notes Clint Binkley, Senior Vice President.

Long/Short Equity managers were the best performing strategy group in December, gaining +2.28%. For the year, Long/Short managers added +23.35%, pacing the S&P 500 and outperforming the index by more than 20% over a 2 year period. Growth funds performed slightly better than Value managers in 2009, returning +28.93% and 24.82%, respectively. Short-biased funds lost (-14.91%) on average in 2009 but are still up more than 10% over a 2 year period.

Market Neutral funds gained +1.69% in December and +18.37% during the year. The Event Driven sector performed moderately better than Arbitrage funds as a whole, although pockets of the Arbitrage space enjoyed their best year on record. Convertible Arbitrage managers closed the year with a gain of +2.17% on the month and +49.42% for the year to become the best performing hedge fund sector during 2009. Fixed Income Arbitrage funds turned in a +22.22% gain during the year, moderately higher than the gain of +15.86% achieved by Other Arbitrage managers. Event Driven managers enjoyed a profitable December and advanced by +3.00%, driven by Distressed and Special Situations funds, which gained +2.97% and 4.24%, respectively. For the year, Event Driven and Distressed Securities funds advanced 300 basis points more than Long/Short Equity funds.

Directional Trading funds struggled in December as trend following strategies closed the books on a disappointing 2009. Futures funds lost -2.70% during the month and, along with Shortsellers, were the only hedge fund sector to finish with a loss for the year. Macro funds also experienced a slight loss of -0.42% during the month but still managed a return of +9.30% for the year.

Emerging Market funds advanced for their tenth straight month due to expanding production in China and other developing economies. These funds were the second best performing hedge fund sector during 2009, gaining over 42%. Fixed Income funds also moved higher, advancing by +2.30%. Finally, Multi-Strategy funds treaded water for the month and slightly trailed the GGHFI on the year, gaining +17.13%.

The GGHFI is one of the oldest benchmarks of the hedge fund universe. Final index results for December will be available mid-January, once additional funds have submitted returns. The GI2, comprising 40 constituent funds, adds investability, active management, and liquidity to the diversification and performance benefits of the broad Greenwich Global Hedge Fund Index. It references actual hedge fund vehicles as opposed to separately managed accounts or other methods used in an attempt to replicate the returns of hedge fund vehicles. The Investable Index has a correlation of 0.95 and beta of 0.94 to the GGHFI and is reported semi-monthly net of a 0.02% per period index calculation fee. Past performance and indices construction rules for all Greenwich Hedge Fund Indices may be viewed at www.greenwichai.com.

- FG

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: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. 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

  3. 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

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would