Wed, Jul 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

GAM's hedge fund team reports mixed results for October

Tuesday, November 06, 2012

Anthony Lawler
Opalesque Industry Update - GAM's October performance update reports that October was an eventful month with continued policy uncertainty in Europe and the US, corporate earnings broadly disappointing and super-storm Sandy disrupting the US East coast and US markets. Global markets were generally weaker with commodities and equities delivering negative returns for the month. The MSCI World index was down 0.6% in US dollar terms.

Hedge funds delivered mixed results in October but in aggregate closed in negative territory. The HRFX Global Hedge Fund index lost 0.5%, bringing its year-to-date performance to 2.1%. At the strategy level, event driven, global macro and relative value approaches all posted negative returns according to the HFRX strategy indices. Equity hedge managers had a positive month, helped by gross and net exposure levels well below long-term averages.

Anthony Lawler, Portfolio Manager at GAM, said: "Policy uncertainty on both sides of the Atlantic was arguably a dominant factor influencing global markets in October. Investors and corporates remain hesitant to invest and hire when the policy, tax and regulatory framework is in flux. Europe is debating its way toward a hoped 'muddle through' solution. However, there are still numerous country-specific hurdles to clear. In the US, investors face the dual uncertainties of the election and the fiscal cliff. Given these unknowns, they generally remained cautious or de-risked their portfolios by selling during October. Notably even sovereign bonds, that are commonly perceived as safe havens, sold off with UK gilts, US treasuries and German bunds all producing negative price moves for the month."

October was a challenging month for many managers and this included trend following CTAs. These managers in aggregate held portfolio positions that typically act balanced, as they were positioned long bonds, a bearish bet, against long equities and long energy, bullish bets. In October all three of these positions moved together and resulted in a negative month for CTAs.

Lawler added: "A number of hedge fund managers across strategies turned more positive after the Fed's QE3 announcement in September. In October, these managers' more bullish views proved generally unhelpful for those long risk assets outside of structured credit. But constructive and risk-on positioning did continue to help managers of structured credit positions and some relative value managers, where we continue to see solid out-performance. That said, at the end of October many hedge funds have slightly reduced risk going into the US election, but they stand ready to add risk back on once a clear result emerges."

press release

bc

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. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  3. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  4. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

  5. Investing - Carlyle teams with TCW in push for ordinary investors[more]

    From Bloomberg.com: Carlyle Group LP isn’t backing down from its goal of offering alternative strategies to the masses, despite early setbacks. The Washington-based firm is teaming up with TCW Group, which is majority owned by Carlyle funds, to offer three vehicles that give ordinary investors acces

 

banner