Mon, Oct 23, 2017
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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad