Tue, Mar 31, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner