Mon, Sep 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge: Hedge funds up 2.63% during 3Q 2012 (+4.23% YTD)

Tuesday, October 09, 2012
Opalesque Industry Update: September was another winning month for hedge funds as the sector posted its third consecutive month of positive returns. The Eurekahedge Hedge Fund Index was up 1.02%1 in September and 2.63% dr 3Q 2012 while September year-to-date the index is up 4.23%. Global markets rallied strongly during the month on the back of monetary easing steps taken by governments - the MSCI World Index was up by 2.29%2 during the month.

Key takeaways for the month of September 2012:

  • Hedge funds witnessed three consecutive months of positive returns — up 2.63% in 3Q 2012.
  • The Eurekahedge Hedge Fund Index is up 4.23% year-to-date with over 1000 funds up more than 10% and 500 funds up more than 15%.
  • Asia ex-Japan managers gained 4.11% in September with Indian hedge funds delivering the best returns of 8.02%.
  • The Mizuho-Eurekahedge Asia ex-Japan Index rose 5.70%3 in September.
  • Launch activity picked up with nearly 200 funds launched in 3Q 2012.
  • All regions posted positive asset flows for August while early results indicated strong allocation activity in September.

Regional Indices

All regional mandates posted positive returns for the month on the back of rallies in the underlying markets. The month started off on a bullish note with signs of stabilising global economic growth and prospects of additional quantitative easing dominating the market sentiment. The rallies were driven by the opinion that the ECB's bond buying program and QE3 announcement by the US Federal Reserve reduced the risk of a prolonged economic slowdown.

Asia ex-Japan managers posted the best returns for September, gaining 4.11% as regional market indices witnessed sustained and steady gains during the month. Managers made good on their long calls in emerging markets with exposure to South East Asia being especially profitable to portfolios - as the managers benefitted from gains in equity markets as well as strengthening regional currencies.

European and North American hedge funds also posted healthy gains for the month with returns of 1.12% and 1.37% respectively. The MSCI Europe Index was up 1.30% with equity markets holding on to their post-ECB announcement gains through the month. Some managers posted losses from long positions in European debt and short Euro holdings.

Strategy Indices

With the exception of CTA/managed futures, all strategic indices delivered positive returns in September with long/short equity managers posting the strongest returns of 1.99%. As many equity investing managers had expected some sort of policy action over the last two months, they had built their bullish positions into portfolios and were therefore able to capture most of the upside from equity markets. Among CTA/managed futures funds, trend-following strategies were mostly loss-making for the month, while short-term quantitative traders also witnessed a lacklustre month - the Eurekahedge CTA/Managed Futures Hedge Fund Index was down 0.74% during the month.

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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. Investors looking at other sources for hedge fund-like returns[more]

    Komfie Manalo, Opalesque Asia: Investors who are always on the lookout for higher gains are looking at alternative sources of income, particularly exchange-traded fund industry that generates hedge fund-like returns, according to

  5. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e