Sat, Feb 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

All Edhec indices positive in April except for Short-Selling (-2.95%, -8.5% YTD), Distressed Securities best performer so far (2.49%, 8.3% YTD)

Tuesday, May 18, 2010
Opalesque Industry Update - After the elation of the previous month, the stock market exhibited more cautious optimism in April as the S&P 500 index rose again (+1.58%) but displayed implied volatility (22.05%) that was slightly on the rise and above the 20% mark.

The commodities market achieved a third consecutive month of remarkable gains (+3.73%). On the fixed-income market, the Lehman Global Bond index managed a solid profit (+1.05%) as regular bonds (+0.66%) outperformed convertible bonds (+0.64%). The latter were unable to reproduce their excellent score in March. The growth of the credit spread (+0.44%) remained positive. On the money market, the dollar accelerated its ascent (+0.59%) to its highest level since June 2009.

All hedge-fund strategies benefited from this favourable situation.

Unaffected by the recovery in the stock market and sustained by the increasing credit spread and profitable convertible bonds, the Convertible Arbitrage strategy continued its post-crash trend and registered yet another solid gain (+2.13%). The CTA Global strategy (+1.15%) managed a third consecutive month of positive returns, in line with its long-term correlation to the regular bonds and commodities. The increase of the credit spread maintained the very significant profitability of the Distressed Securities strategy (+2.49%) which managed a thirteenth month of continuous gains.

The Equity Market Neutral strategy registered a modest performance (+0.30%) but completed a full semester of profitability. The Long/Short Equity strategy managed a more consistent profit (+1.06%) which brought it close to its highest level of October 2007. Finally, with a considerable gain (+1.82%) which outperformed the S&P 500 index, the Event Driven strategy achieved a fourteenth month of profitability and pushed its highest level even further.

Overall, the Fund of Funds strategy recorded an above average performance (+0.95%).


EDHEC-Risk Institute - Hedge Fund Strategies

April 2010

YTD

Convertible Arbitrage

2.13%

5.4%

CTA Global

1.15%

2.0%

Distressed Securities

2.49%

8.3%

Emerging Markets

1.33%

4.6%

Equity Market Neutral

0.30%

1.9%

Event Driven

1.82%

6.2%

Fixed Income Arbitrage

1.09%

4.5%

Global Macro

0.86%

2.2%

Long/Short Equity

1.06%

3.8%

Merger Arbitrage

0.40%

2.6%

Relative Value

1.29%

4.3%

Short Selling

-2.95%

-8.5%

Funds of Funds

0.95%

2.4%


www.edhec-risk.com


Bg

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: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  2. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  3. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl

  4. Europe - 1 trillion euro non-performing loans are clogging EU lending channels[more]

    From Centralbanking.com: As much as 1 trillion euro of non-performing loans (NPLs) are still clogging the lending channel in the European Union. An EU asset management company (AMC) could address market failures in the secondary market for NPLs as part of a suite of measures designed to tackle the b

  5. Investing - Hedge funds' novel approach: investing for longer at lower returns, U.S. hedge fund Delta Partners lifts stake in Bellamy's, Hedge funds stockpile cobalt, electric carmakers on battery alert, Facebook is racking up the likes among the world's biggest hedge funds, Einhorn affirms gold on Trump uncertainty[more]

    Hedge funds' novel approach: investing for longer at lower returns From FNLondon.com: Hedge funds are known for making short-term bets, dipping quickly in and out of markets to take advantage of swings in prices. But, under pressure to innovate, some big-name managers are looking at ways