Opalesque Industry Update – Hedge fund managers returned modest gains on average amidst volatile markets in November 2012, with the Greenwich Global Hedge Fund Index up +0.36% for the month. |
Most strategies reported positive results for the month, with the notable exception of Managed Futures. The GGHFI’s gain of +0.36% trails global equity returns in the S&P 500 Total Return (+0.58%), and MSCI World Equity (+1.07%) equity indices. 62% of constituent funds in the GGHFI ended the month with gains.
Global Index Strategy Highlights
• Markets fell sharply early in the month after the US elections, only to reverse course mid-month and end the month with gains. On average, Long/Short Equity funds were not quite able to keep up, gaining +0.40%. Growth oriented funds just barely led the way among sub-strategies (+0.49%) and were closely followed by Opportunistic (+0.46%) and Value funds (+0.43%).
• Arbitrage (+0.75%) and Event-Driven (+0.62%) strategies performed particularly well during the month. Within these strategies, Merger Arbitrage, Convertible Arbitrage, and Other Arbitrage were the top performers, all returning over 1% for the month. Distressed Securities also saw another strong month (+1.00%), and remains one of the top strategies YTD (+10.58%).
• Managed futures funds posted their fourth straight month of losses in November, losing -0.23%. This strategy is now down -3.36% YTD.
• Regionally, funds investing in Emerging Markets (+0.35%) performed similarly to those investing in Developed Markets (+0.36%) on average, though the results are more divergent on a region by region basis. Managers focused on Emerging Asian markets had the most successful month amid signs of renewed growth in China, posting gains of +1.54% on average. They were followed by Western European funds (+1.37%), as additional financial aid for Greece bolstered confidence. Despite the continuing debt crisis, European funds are now nearly the top performing funds on a regional basis YTD, up 7.88% and second only to Latin American funds (+7.89).
Full performance table: www.greenwichai.com/index.php/returns-gai-global-hf-indices
November's first estimates were reported on December 6th: Source