Wed, Jun 29, 2016
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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,

  5. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t