Fri, Aug 28, 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. Commodities - Commodity hedge funds lose most in three years as rout deepens, Funds bet on Shell deal as oil prices plunge[more]

    Commodity hedge funds lose most in three years as rout deepens From Bloomberg.com: Hedge funds betting on commodities lost the most in almost three years in July as the price-rout deepened. Funds lost money for a third month, according to the Newedge Commodity Trading Index, which was re

  2. Investing - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  3. JTC acquires Kleinwort Benson’s fund administration business[more]

    Bailey McCann, Opalesque New York: JTC has completed the acquisition of Kleinwort Benson’s fund administration business, boosting assets under administration (AuA) to $56 billion. Kleinwort Benson is based in the Channel Islands, South Africa. The transaction, which relates to the whole of K

  4. Performance - Hedge funds set to bank millions by short selling during London share slump, The China market chaos has made this hedge fund its most money in 2 years, Odey hedge fund said to surge 9% betting against China, Hedge funds with long-held bearish views on China rack up profits, Hedge funds in U.S. seen curbing damage from August turbulence, Hedge funds collect on their predictions of a fall, How did managed futures do while the Dow was down 1000[more]

    Hedge funds set to bank millions by short selling during London share slump From TheGuardian.com: Hedge funds are set to bank tens of millions of pounds from the slump in share prices in London, having bet almost £18bn that the FTSE 100 would fall. The funds making the bets include Lansd

  5. Opalesque Exclusive: John C Head IV leaves alternative investment firm Gallery Capital, David Harrison joins as co-CIO[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: John C Head IV, former president and co-founder of Gallery Capital Management, an alternative inv

 

banner