Wed, Sep 3, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Morningstar MSCI Composite Hedge Fund Index rose 0.7% in September, 4.8% YTD

Thursday, October 18, 2012
Morningstar, Inc., a leading provider of independent investment research, today reported preliminary hedge fund performance for September 2012 as well as estimated asset flows through August.

The Morningstar MSCI Composite Hedge Fund Index, an asset-weighted composite of nearly 1,000 hedge funds in the Morningstar Hedge Fund database, rose 0.7% in September, ending the third quarter up 3.0%.

“Global equity markets rallied on the back of monetary easing steps taken by central banks," said Terry Tian, alternative investments analyst with Morningstar. "Equity-focused hedge funds were the biggest winners in September.”

The U.S. stock market continued to climb in September, as the Federal Reserve rolled out the third round of quantitative easing. The S&P 500 Index and the Russell 2000 Index rose 2.6% and 3.3% in September, respectively, and 6.2% and 5.2% over the quarter, respectively. Equity-focused hedge funds lagged the broad market due to their hedging positions, but still delivered some of the strongest returns among all hedge fund strategies. The Morningstar MSCI Equity Hedge Fund Index and the Morningstar MSCI Small Cap Hedge Fund Index rose 1.9% and 2.9% in September, respectively, ending the third quarter up 3.6% and 4.6%, respectively.

The supportive policies of the U.S. Federal Reserve and the European Central Bank helped drive emerging markets stock prices higher as well. The MSCI EM NR Index jumped 6.0% in September and 7.7% for the third quarter. The Morningstar MSCI Emerging Market Hedge Fund Index rose 1.7% in September and 3.3% for the third quarter.

Event-driven strategies delivered the third consecutive month of positive returns, as merger deal flow and risk appetite remained strong. The Morningstar MSCI Event-Driven Hedge Fund Index turned out to be one of the best performing hedge fund indexes, rising 3.0% in September and finishing the third quarter up 5.1%.September proved to be a difficult month for managed futures strategies, however, due to reversals in commodity markets. Crude oil prices, for example, rose in early September, but reversed later in the month as Saudi Arabia increased production and investors feared a slowdown in China. Major agricultural commodities, such as corn and soybeans, fell in September after an extended summer rally. The Morningstar MSCI Systematic Trading Hedge Fund Index declined 0.7% for the month, but remained up 2.2% for the quarter.

August asset flows: In August, single-manager hedge funds in Morningstar's Hedge Fund Database leaked $1.8 billion. The systematic futures category experienced the heaviest redemptions among all single-manager categories, bleeding $3.4 billion. The debt arbitrage and global macro categories received inflows of $784 million and $438 million, respectively.

Press release and performance table: www.corporate.morningstar.com/us/documents/hedgefund/September2012HedgeFundPressRelease.pdf

Bg

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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Legal – GE Capital and Petters-related hedge fund in legal battle, SEC sanctions Donald Brownstein's hedge fund over conflicts of interest[more]

    GE Capital and Petters-related hedge fund in legal battle From Startribune.com: A billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters. The bankruptcy trustee for two failed Flo

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius