Wed, Jul 30, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge: Hedge funds up 0.47% in August as market sentiment remained optimistic (+3% YTD)

Tuesday, September 11, 2012
Opalesque Industry Update - Hedge funds posted another month of positive returns for August as the Eurekahedge Hedge Fund Index gained 0.47%1 during the month. Market sentiment was optimistic for most of the month, with prospects for QE3 increasing, positive signals from the Euro zone and stronger US economic data. The MSCI World Index was up by 1.64%2 in August.

Key takeaways for the month of August 2012:

  • Hedge funds gained 0.47% in August and were up 3% year-to-date.
  • Relative value hedge funds were up 7.34% August year-to-date and have attracted significant assets in 2012 – total AUM now stands at US$60 billion.
  • Event driven posted their best return in six months – the Eurekahedge Event Driven Hedge Fund Index was up 1.65%.
  • Distressed debt hedge funds also saw their best results in six months with the Eurekahedge Distressed Debt Hedge Fund Index gaining 1.07%.
  • The Mizuho-Eurekahedge Emerging Markets Index rose 1.63% in August.
  • CTA/managed futures funds have witnessed six months of net negative asset flows, losing US$16 billion since February 2012.

Regional Indices

Most regional mandates finished the month in positive territory with managers allocating to the Americas leading the way. The Eurekahedge Latin American Hedge Fund Index was up 1.09% while North American managers gained 1.02% during the month. Although the markets posted a drop at the start of the month due to uncertainty about the Euro zone's bond buying program, the trends reversed quickly on the back of positive comments from the ECB and strong US economic data. Positive sentiments regarding QE3 added further steam to the rally – the S&P500 was up 1.98% during the month.

European managers also posted a positive return of 0.62% amid healthy returns in underlying markets – the MSCI Europe Index3 was up 2.10%. Risk appetite was up during the month mostly through policy action expectation. Emerging markets and Asia ex-Japan hedge funds also finished the month in positive territory with gains of 0.88% and 0.63% respectively.

Strategy Indices

Most strategies were positive in August amid strong trends across a number of sectors. Event driven and distressed debt hedge funds posted their best returns in six months as market sentiment remained buoyant through most of the month. The Eurekahedge Event Driven Hedge Fund Index was up 1.65% in August while the Eurekahedge Distressed Debt Hedge Fund Index gained 1.07%. CTA/managed futures funds witnessed losses of 0.63% as some funds lost out on currency trades. Trend following strategies posted negative returns for the month with short-term systematic and fx traders seeing the largest losses.

Eurekahedge

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. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass