Mon, Apr 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI Fund Weighted Composite Index declined 2.26% (est.) in May, +1.32% YTD

Monday, June 07, 2010
Opalesque Industry Update - Hedge Fund performance was adversely impacted by the escalation of the Euro-centric sovereign bond crisis in May, with the HFRI Fund Weighted Composite Index declining by -2.26% for the month. May was the worst performance month since Nov 2008 and inclusive of the recent loss hedge funds have surrendered a large portion of early year gains, ending the first five months of 2010 with a gain of +1.32%. Hedge funds were broadly impacted by the sharp increase in risk aversion associated directly with the sovereign bond crisis escalation, as well as the effects this situation has had on global equity markets, corporate fixed income and currency markets.

Equity Hedge was the worst area of strategy performance, declining -3.7% in May, the worst month since Nov 2008. Global equity markets were broadly impacted by the increase in risk aversion, with weakest areas of performance in Fundamental Growth only partially offset by gains in Short Biased and Equity Market Neutral strategies.

Event Driven also posted sharp loss of -2.2% on increasing risk premiums in announced transactions and weakness in the corporate credit markets, with weakest areas of performance in Distressed and Shareholder Activist strategies.

Relative Value Arbitrage posted a loss of -0.98%, as losses in Convertible Arbitrage and Corporate credit strategies were only partially offset by gains in Volatility and Asset Backed strategies. May losses have pared 2010 gains for RVA, bringing YTD performance to +4%, but May also snaps a streak of 16 consecutive months of gains for Relative Value, the last monthly decline was December 2008.

Macro posted a loss of -0.94% as gains in currency focused funds were offset by losses in other Discretionary Macro strategies; Systematic Diversified Macro experienced a wide dispersion across constituents, with an average decline of 1% in May.

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