Opalesque Industry Update - |
· The HFN Hedge Fund Aggregate Index was +1.72% in July and +1.84% in the first seven months of 2010. The S&P 500 Total Return Index (S&P) was +7.01% in July and -0.11% YTD.
· Hedge fund assets increased an estimated +1.37% in July to $2.249 trillion, after falling for two consecutive months. Investor’s flows accounted for an estimated net increase of $9.3 billion, the second highest monthly net investor inflow in 2010. Performance added an additional $21.09 billion.
· Positive net investor flows in July followed the industry’s first net investor outflow in June. The return to net inflows is a positive sign as it reversed a four month trend where the rate of inflow slowed and turned negative in June.
· The asset increase due to performance indicates a gain of +0.95%. This figure being below the equal weighted HFN Aggregate July figure is an indication smaller funds performed better than larger funds in July.
· Long biased equity focused strategies produced the best returns in July and emerging markets and energy sector funds were best, however all groups underperformed broad equity markets.
· Long/short fund returns lagged the S&P significantly, indicating managers tended to remain cautiously positioned in July.
· Fixed income strategies were mostly positive and markets favored those holding riskier assets. Directional strategies outperformed arbitrage and corporate bond strategies performed best while government bond strategies lagged, though all groups were positive on average.
· Commodity strategies were mixed and the group underperformed the rest of the hedge fund industry mostly due to losses in funds investing in the metals sector.
HFN’s full July report, to be released in the third week of August, will provide details on high water marks and asset flows by strategy and region.
July and YTD 2010 Benchmark Performance:
Emerging Market Benchmarks:
HFN Brazil Index: +6.50% in July, +3.44% in 2010
Broad and Developed Market Benchmarks:
Fixed Income (FI) Strategies:
Equity (EQ) Strategies:
Commodity and Foreign Exchange (FX) Related Strategies