Tue, Nov 21, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFR: Hedge funds extend summer gains on euro optimism

Monday, September 10, 2012
Opalesque Industry Update: Hedge funds posted gains for the 3rd consecutive month in August, as the Euro advanced on optimism for a resolution of the European sovereign debt crisis. The HFRI Fund Weighted Composite Index posted a gain of +0.8 percent for the month, with leadership across Equity Hedge, Event Driven and Relative Value strategies, with each of these also posting their 3rd consecutive monthly gain, reported HFR today, the global leader in the indexation, analysis and research of the global hedge fund industry.

Equity Hedge funds had the strongest contribution to overall industry performance, with the HFRI Equity Hedge Index gaining +1.2 percent for the month. Gains were broad-based across the strategy, with Quantitative Directional, Fundamental Value and Fundamental Growth all gaining between +1.25 and +1.6 percent. Other EH strategies had positive contributions to August gains, with Equity Market Neutral, Energy and Technology-focused funds gaining between +0.6 and +1.2 percent; Short Bias funds detracted from performance. Event Driven funds posted gains similar to those of Equity Hedge, with the HFRI Event Driven Index gaining +1.1 percent. ED gains were led by the equity-sensitive Special Situations and credit-sensitive Distressed sub-strategies, with both gaining over +1.0 percent in August.

Fixed income-based Relative Value Arbitrage posted a gain despite rising yields, with spread tightening and effective hedging contributing to the HFRI Relative Value Index gaining +0.9 percent; the August gain is the 8th in the last 9 months and RVA has posted positive performance in 37 of 44 months since December 2008. Relative Value sub-strategies of Volatility, Yield Alternatives and Asset-Backed had significant contributions to RVA performance. Macro hedge funds posted a decline for the month, partially offsetting strong July performance, with the HFRI Macro Index declining by -0.16 percent. Macro performance also reflected dispersion across various sub-strategies; the HFRI Macro: Systematic Diversified/CTA Index declined by -0.9 percent and Currency strategies declined by -0.6 percent on the Euro advance; however, Macro Discretionary strategies gained over +1.0 percent while Commodity funds gained +1.9 percent.

Fund of Funds advanced for the 2nd consecutive month, with the HFRI Fund of Funds Composite Index gaining +0.64 percent in August. Emerging Markets hedge funds also had positive contribution to industry performance, with the HFRI Emerging Markets Index gaining +1.06 percent.

"Hedge funds were tactically positioned for the equity, fixed income and commodity developments in August, with many funds having strategically increased equity net exposure, reduced short Euro currency positions and appropriately hedged fixed income exposure through mid-summer," stated Kenneth J. Heinz, President of HFR. "While funds remain cognizant of the potential for an adverse market reaction in the ongoing European banking and sovereign debt crisis, recent developments have been constructive. As a result, hedge funds have modified defensive positioning to consider a continuum of positive and negative scenarios, increased optionality and volatility implications of the Euro sovereign debt crisis, as well as a broadening of focus to include the US elections and Chinese growth considerations."

HFR

Press Release

BM

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. Middle East - Saudi-Iran war would create this domino effect of global disaster, Saudi billionaires said to move funds from region to escape asset freeze[more]

    Saudi-Iran war would create this domino effect of global disaster From CNBC.com: Events appear to be spinning out of control in the Middle East, and the threat a Saudi-Iranian war is looking increasingly credible. Make no mistake, an out and out conflict between the two nations would be

  2. Launches - Eaton Vance, Oaktree to launch diversified credit NextShares fund, FIM launches Nordic AI-powered fund[more]

    Eaton Vance, Oaktree to launch diversified credit NextShares fund Eaton Vance Management, a subsidiary of Eaton Vance Corp., announced the expected mid-November launch of Eaton Vance Oaktree Diversified Credit NextShares, a new Eaton Vance-sponsored exchange-traded managed fund. Eaton Va

  3. Outlook - Gundlach's stock market warning comes true[more]

    From Bloomberg.com: Jeffrey Gundlach has been warning something's got to give. Based on the past two days, looks like we have our answer. Stocks fell around the world a second day and high-yield bonds headed for a fourth straight loss, resuming a historic correlation that the hedge fund manager on W

  4. Investing - Six more Warren Buffett buys, including Southwest Airlines, Seth Klarman's Baupost Group bets on beaten-up health care, Roark Capital offers to buy Buffalo Wild Wings: Wall Street Journal[more]

    Six more Warren Buffett buys, including Southwest Airlines From Forbes.com: Our latest recommendation for aggressive investors is Restaurant Brands International . Hedge fund manager Bill Ackman has an incredible 40.1% of his fund at Pershing Square Capital Management invested in Restaur

  5. Investing - Tages Capital steps in to rescue Italy's Banca Carige, Hedge funds place $5.4bn bet on Toshiba's resurrection, Why outside investors are fleeing: John Paulson's 6 worst investments[more]

    Tages Capital steps in to rescue Italy's Banca Carige From TheTimes.co.uk: A little known London hedge fund has played a pivotal role in the first rescue of an Italian bank without state intervention since the country's bad debt crisis started three years ago. Banca Carige, a Genovese le