Fri, Jul 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque Futures Intelligence

Index Tracker: The past two months were good for managed futures. Here's a comparison.

Thursday, May 27, 2010

Springtime for Futures

March and April were very good for managed futures, a contrast to the losses at the beginning of the year and in 2009. The strategy's year-to-date return is now close to the average for hedge funds overall. The S&P 500 did better than commodity trading advisors and hedge funds as of April, but the Greek debt crisis and increased volatility in May ushered in a tougher environment for stock markets.

 

April

March

YTD

Credit/Suisse Tremont:

 

 

 

Futures

1.89%

4.25%

4.03%

Global Macro

1.65%

0.38%

4.27%

Broad Hedge Fund Index

1.24%

2.22%

4.37%

 

 

 

 

Equity Markets:

 

 

 

S&P 500

1.6%

6.0%

7.0%

MSCI World

-0.2%

5.9%

2.6%

---------------------------------------------------------------------------------------

Global macro stayed in the ballpark of the broad hedge fund index year to date. Research from Credit Suisse concludes that this strategy had mixed results in the first quarter but may still benefit from opportunities created by diverse central bank policy responses, growth conditions and the re-emergence of sovereign risk.

Boris Arabadjiev, chief investment officer of Credit Suisse's fund of funds group, points out that the difference in returns between hedge fund strategies narrowed during the past few months. This suggests that individual strategy selection has become less crucial for many investors who are focused on the benefits of diversified exposure to hedge funds.

Assets continued to trickle back to hedge funds in the first quarter, with a $2 billion new inflow estimated by Credit Suisse. Managed futures received only a small portion of the new money, but CTAs remain positive about investors' response.

One indicator is managers' strong interest in capital introduction events. Lisa Vioni, chief executive of Hedge Connection, is organizing an online get-together for managers and high-net-worth investors, advisors and family offices, to take place in June. She says there will be a track with up to 10 CTAs and a track with up to 10 global macro managers. She's seen interest from CTAs, including a large manager.

The 2009 loss in managed futures discouraged fund of funds allocations. In any event, the share of fund of funds in hedge fund assets have shrunk in the past two years, from close to half to less than one-third by some estimates. Still, certain fund of funds express interest in futures strategies with specific characteristics.

Fears raised by the debt turmoil in Europe and the impact of this on equity markets may boost the attractiveness of hedge fund strategies, including global macro and CTAs.



 
This article was published in Opalesque Futures Intelligence.
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Opalesque Futures Intelligence
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: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  4. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New

  5. SWFs - Abu Dhabi wealth fund says long-term investment gains fell[more]

    From Bloomberg.com: The Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, said its long-term gains dropped in 2015. The fund’s 20-year annual rate of return slowed to 6.5 percent at the end of 2015, from 7.4 percent a year earlier, it said in its annual review. Over