Sat, Apr 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Morningstar MSCI Composite Hedge Fund Index was down 0.5% (est.) in May, but still up 2.7% YTD

Wednesday, June 20, 2012
Opalesque Industry Update — Morningstar, Inc., a leading provider of independent investment research, today reported preliminary hedge fund performance for May 2012 as well as estimated asset flows through April 2012.

The Morningstar MSCI Composite Hedge Fund Index, an asset-weighted composite of nearly 1,000 hedge funds in the Morningstar Hedge Fund database, was down 0.5% in May, but still up 2.7% for the first five months of the year.

"May proved to be a challenging month for most hedge fund strategies as the European sovereign debt crisis once again dominated market sentiment," said Terry Tian, alternative investments analyst with Morningstar. "Managed futures was one of the few strategies to shelter investors from the market downturn.”

The U.S. stock market suffered the biggest decline since last September—the S&P 500 Index and the Russell 2000 Index dropped 6.0% and 6.6% in May, respectively. European and emerging markets stocks also declined sharply. The MSCI Europe NR USD and the MSCI EM NR USD indexes plummeted 12.3% and 11.2%, respectively, in May. In light of this broad market downturn, equity-based hedge funds strategies were some of the hardest hit—the Morningstar MSCI Equity Hedge Fund Index fell 3.8% in May.

International-focused hedge funds also posted heavy losses. The Morningstar MSCI Europe Hedge Fund Index and the Morningstar MSCI Emerging Markets Hedge Fund Index dropped 1.8% and 5.7%, respectively.

Managed futures strategies finally returned to their winning ways, as major commodities, such as crude oil and copper, exhibited consistent declining trends in May. The Morningstar MSCI Systematic Trading Hedge Fund Index jumped 2.1% in May, its largest gain since July 2011, making it one of best-performing hedge fund indexes for the month.

Other winners were currency-focused hedge funds—the Morningstar MSCI Currencies Hedge Fund Index rose 2.0% in May. Currency hedge funds managed to benefit from the sharp depreciation of European and major emerging market currencies against the U.S. Dollar.

In April, single-manager hedge funds in Morningstar's Hedge Fund Database leaked $4.1 billion, while funds of hedge funds gathered $402 million. The systematic futures category experienced the heaviest redemptions among all single-manager categories, bleeding $3.8 billion. The global macro and diversified arbitrage categories received inflows of $859 million and $529 million, respectively.

Full press release and performance tables: http://corporate.morningstar.com/US/documents/pr/may-2012-hedge-fund-release.pdf

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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n