Wed, May 4, 2016
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 down -0.8% in October (+4.0% YTD)

Wednesday, November 28, 2012
Opalesque Industry Update: Morningstar, Inc., a leading provider of independent investment research, today reported preliminary hedge fund performance for October 2012 as well as estimated asset flows through September. The Morningstar MSCI Composite Hedge Fund Index, an asset-weighted composite of nearly 1,000 hedge funds in the Morningstar Hedge Fund database, fell 0.8% in October, but was up 4.0% year to date as well as during the last 12 months.

“Hedge funds were a mixed bag in October, as managed futures strategies performed particularly poorly, but international equity-focused and short-biased funds posted gains on average,” Nadia Papagiannis, director of alternative fund research at Morningstar, said.

The Morningstar MSCI Systematic Trading Hedge Fund Index, which includes hedge funds that profit from price trends in the futures market, plummeted almost 4.0% in October, the worst monthly performance since March 2003. Price reversals in a number of commodities, including precious metals, natural gas, and wheat, hurt many trend-following hedge fund strategies.

Domestic stock prices also seesawed throughout the month because of disappointing corporate earnings and fears of the impending fiscal cliff. The S&P 500 and Russell 2000 Indexes declined 1.9% and 2.2%, respectively. Short-biased hedged funds profited, and long-biased equity hedge funds successfully defended against the market turbulence. The Morningstar MSCI North America and the Equity Hedge Fund Indexes edged up slightly at 0.01% and 0.2%, respectively, while the Morningstar MSCI Short Bias All Size Hedge Fund Index climbed 3.1%.

International equity strategies profited in October, as the central banks of Europe, England, Japan, Australia, and South Korea maintained accommodative monetary policies. The Morningstar MSCI Europe and Asia Pacific Hedge Fund Indexes rose 0.1% and 1.6%, respectively, in October. The Morningstar MSCI Emerging Markets Hedge Fund Index also rose 1.3% in October, driven primarily by the strong performance of Chinese equities.

 October was a tough month for merger arbitrage strategies. BCE Inc.’s planned acquisition of Astral Media and Petronas’ targeted acquisition of Progress Energy Resources were halted by Canadian regulators. The Morningstar MSCI Merger Arbitrage Hedge Fund Index declined 0.4%.

In September, single-manager hedge funds in Morningstar's Hedge Fund Database saw outflows $1.1 billion. The global macro category experienced the heaviest redemptions among all single-manager categories, bleeding $546 million. The debt arbitrage strategies and long-only debt strategies had inflows of $147 million and $194 million, respectively.

Morningstar

Press Release

BM

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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n