Mon, May 25, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner