Sat, Dec 27, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI Fund Weighted Composite Index up 1.1% in September (+4.7% YTD)

Monday, October 08, 2012
Opalesque Indsutry Update - Hedge funds posted their strongest monthly performance since February to conclude 3Q12, led by Equity Hedge strategies as investor sentiment improved on positive developments in the European banking and sovereign debt crisis, as well as US stimulus efforts, according to data released today by HFR, the leader in research, indexation and analysis of the global hedge fund industry. The broad-based HFRI Fund Weighted Composite Index gained +1.1 percent in September, the fourth consecutive monthly gain, ending 3Q up +2.9 percent and improving YTD performance to +4.7 percent. Fund of Hedge Funds also posted the best performance since February, with the HFRI Fund of Funds Composite Index gaining +0.8 percent.

September gains were led by equity-sensitive strategies as the HFRI Equity Hedge Index gained +1.94 percent, the fourth consecutive month of positive returns, with significant contribution to performance from both Fundamental Growth and Value strategies, as well as funds focused on Technology and Healthcare. Emerging Markets hedge funds produced the strongest industry performance, with the HFRI Emerging Markets Index posting a gain of +3.1 percent for the month.

Relative Value Arbitrage and Event Driven strategies also posted gains on continuation of strong M&A, credit and equity environments, with the HFRI Relative Value and Event Driven Indices gaining +1.3 and +1.1 percent, respectively. Despite the increase in yields, fixed income based Relative Value Arbitrage gains were driven by credit spread tightening, effective interest rate hedging and targeted purchases of fixed income securities; ED gains were broad-based across sub-strategies including Distressed, Activist and Special Situations. The HFRI Relative Value Index posted its ninth gain in the last ten months, with contributions from credit sensitive exposures; the HFRI FI: Asset Backed Index advanced +2.0 percent in September and leads all hedge fund strategies with a gain of +13.3 percent for the year.

Macro hedge funds detracted from industry wide gains on weakness in trend following and commodity exposures, with the HFRI Macro Index posting a decline of -0.26 percent; the September decline was the second consecutive monthly decline for Macro. Systematic Macro funds posted declines on short exposures to equities and commodity metals, as the HFRI Macro: Systematic/CTA Index posted a decline of -0.9 percent. Discretionary Macro and Currency focused strategies had positive contributions from positions concentrated in Dollar/Euro, global equities and short fixed income.

"Despite continued uncertainty, the global macro environment improved significantly in 3Q12 as reflected by rising equity markets, increasing investor risk tolerance, supportive financial market liquidity and enhanced hedge fund performance," stated Kenneth J. Heinz, President of HFR. "As a result, institutional investors which had historically maintained small or no allocation to hedge funds are currently exploring or proceeding with commitments to alternative assets as a prudent mechanism to reduce equity market volatility, enhance fixed income portfolio yields and increase the likelihood of achieving required return targets."

Full performance table: Source

fg

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. Hong Kong-Shanghai stock link fails to live up to expectation so far[more]

    Komfie Manalo, Opalesque Asia: In a report, Reuters said that demand has been subdued with the bulk of activities coming from short-term speculative investors. Las

  2. 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

  3. North America - Why Steve Cohen, Connecticut hedge fund billionaire, gives so much in New York[more]

    From Insidephilantrophy.com: Billionaire Steve Cohen was born in Great Neck, New York before attending Wharton, working on Wall Street and then founding SAC Capital Advisors in Connecticut. Though his company (Point72) and foundation are based in Connecticut, Cohen and Alexandra are deeply connected

  4. Investing - Soros buys a highly speculative biotech in the third quarter[more]

    From Fool.com: …The Soros Fund bought 25,000 shares of the struggling small-cap biopharma Aegerion Pharmaceuticals in the third quarter. For those of you who haven't heard of this name, suffice to say that this was a surprising buy in light of the company's recent problems and poor outlook going for

  5. CFTC Revokes Registrations of Illinois Resident Aleks A. Kins and Chicago-based AlphaMetrix, LLC[more]

    Matthias Knab, Opalesque: The U.S. Commodity Futures Trading Commission (CFTC) today announced that it has revoked the registration of Aleks A. Kins of Chicago, Illinois, as an Associated Person and the registrations of AlphaMetrix, LLC (AlphaMetrix), a Delaware limited liability company with its