Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds returned 0.69% in November (5.97% YTD) led by credit and volatility strategies – eVestment HFN

Friday, December 07, 2012
Opalesque Industry Update - Hedge funds returned an average of 0.69% in November 2012, retuning back to positive territory after October’s loss snapped its four month upswing. The majority of early reporting funds posted gains, but there were segmented losses across market exposures and strategies.

Credit funds posted their tenth positive month of the year in November, however flow data from October showed the group experienced only its third month of net redemptions this year and largest since January, a signal investors may becoming wary of crowded credit markets having enjoyed over two years of strong relative returns.

Currently reporting equity strategies have outpaced the S&P 500 TR for the second consecutive month and for the first time during a positive month for the benchmark in more than a year. Small cap, technology and energy exposures produced negative returns in November, but it appears aggregated exposures were not weighted heavily enough towards those markets to bring the group down.

The US Dollar Index crept higher during the month, but that did not prevent FX strategies from posting another monthly loss as the Euro strengthened against the USD. Exposures and strategies are diverse across FX funds, but Euro weakness appears to be a root theme across the group as the two best months for FX strategies in 2012 were May and July, coinciding with the Euro’s largest monthly declines.

Emerging market funds were again positive during the month, with exposure to China again being the lone exception. EM funds are among the best in the industry in 2012, despite returns generated from China focused funds being among the industry’s worst.

Macro fund performance appears to have diverged a bit from managed futures in November with the latter likely suffering similar exposure issues as FX funds.

Volatility strategies have not received much attention this year, but produced some of the industry’s best returns. November was their tenth positive month in 2012 and the group has shown an ability to manage its namesake during the few largely negative market environments this year.

(press release)

eVestment/HFN www.hedgefund.net

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1