Sat, Dec 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

GAM offers insight into July hedge fund performance

Monday, August 06, 2012
Investment group GAM report that July was a choppy month for equity markets and risk assets in general. The MSCI World index ended the month up 1.3%, but during the month the index reversed and changed direction on four occasions moving down or up more than 3% each time. Credit markets showed similar volatility but posted gains by month end. ABS and especially RMBS had a strong month as investors continued to reach for better yields than those available from the bonds of perceived safe sovereigns. Commodities had a strong month on the back of soybeans, wheat and corn rallying very steeply due to supply concerns caused by the US drought.

Hedge fund strategies performed positively in July with the HFRX Global Hedge Fund index up 0.5%. Trend following CTA hedge funds performed notably well with the Newedge Trend Sub-Index up 4.8% for the month.

Anthony Lawler, Portfolio Manager at GAM, said: “July was an encouraging month within which we saw individual managers in each main hedge fund strategy producing positive performance of several percentage points or more. It is particularly pleasing to see global macro have a solid month despite equity markets rallying, given that global macro managers remain cautious on global growth prospects.”

The hedge fund performance drivers for July were varied according to Lawler: “Performance in July came from numerous sources and from positioning across different themes, geographies and asset classes. Within credit and relative value, managers did well in ABS and long credit positions generally. Within global macro including CTAs, gains came from a variety of trades including longs in soft commodities, long global bonds, long US dollar, long Australian dollar and short the euro. It is encouraging to see the diversity of trades that drove performance as this indicates that this month was not simply a risk-on or risk-off month, but rather traders were in many cases rewarded for taking more nuanced directional views.”

Press release

bc

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 - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und