Wed, Oct 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   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t