Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

New Credit Suisse/Tremont research paper reviews hedge fund performance through the first quarter of 2010

Monday, April 26, 2010
Opalesque Industry Update – Credit Suisse Tremont Index LLC today released a new research paper, "Staying the Course: Q1 2010 Hedge Fund Update," that examines the current market environment and its effect on hedge fund returns in the first quarter.

The hedge fund industry (as measured by the Credit Suisse/Tremont Hedge Fund Index, the “Broad Index”) continued its positive performance into 2010, returning 3.1% in the first quarter and outperforming equity and bond indices on a risk-adjusted basis. The report examines the current return drivers in the industry and explores some of the noteworthy trends that have characterized markets in recent months.

Some key conclusions from the report include:

  • As of March 31, 2010, eight out of the ten sectors in the Broad Index posted positive returns in the first quarter, with 69% of all funds posting positive performance;
  • The beta of hedge funds to global equity markets is now at its lowest level since 2004. In turn, manager returns currently appear to be less driven by systematic or beta risks than they have been in the last five years;
  • The Event Driven sector had the strongest performance in the Broad Index, up 4.8%, and the consensus is that credit opportunities could continue to generate alpha opportunities in the space;
  • Overall, hedge funds have recovered 92% of all 2008 losses, while certain sectors, including Convertible Arbitrage and Event Driven, have now fully recovered their 2008 losses;
  • The hedge fund industry experienced estimated net inflows of approximately $2 billion in the first quarter;
  • Including performance gains, estimated industry assets under management currently remain at $1.5 trillion (as of March 31, 2010).
Click here to view the Q1 2010 Hedge Fund Update.

See today’s Opalesque Exclusive: Hedge fund industry returns show lowest beta level since 2004 – Credit Suisse/Tremont here.


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
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: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo