Sat, Oct 22, 2016
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:


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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Other Voices: Follow the advice of investment consultants - I think not[more]

    Mark Rzepczynski, Founding Partner, Chief Investment Officer AMPHI Research and Trading, writes on Harvest Exchange: Investment consultants are a force to the reckoned with in the pension world. They advise and drive many pension decisions around the globe. Consultants literally control trillion