Thu, Aug 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds post December gains as fiscal cliff averted (+1.2% Dec., +6.2% FY12)

Tuesday, January 08, 2013
Opalesque Industry Update: Hedge funds climbed in December as equities posted strong gains on the year's final trading day in anticipation of the passage of legislation to avert the U.S. Fiscal Cliff. The HFRI Fund Weighted Composite Index gained +1.3 percent for the month, bringing FY 2012 performance to +6.2 percent, according to HFR, the established global leader in the indexation, analysis and research of the global hedge fund industry. The HFRI Fund Weighted Composite Index posted gains in six of the year's final seven months, approaching the index's record high value.

Event Driven led industry strategy performance gains for December with strong contributions from a dynamic M&A environment, accessible credit markets and tightening high yield credit spreads, as the HFRI Event Driven Index gained +1.63 percent. The ED Index advanced +8.5 percent in 2012, ending the year with seven consecutive monthly gains. Activist & Distressed exposures led Event Driven sub-strategy contributions in 2012, with gains of +20.2 and +10.4 percent, respectively. The HFRI Equity Hedge Index gained +1.6 percent in December, ending 2012 with gains in 6 of the last 7 months, and bringing FY performance to +7.4 percent.

The HFRI Macro Index posted a gain of +1.0 percent in December, concluding 2012 with a decline of -0.2 percent. Macro performance was undermined in 2H12 by trend-following Systematic Macro CTA exposure, with the HFRI Macro: Systematic Diversified Index declining -2.5 percent for 2012, this after gaining +2.4 percent in the first 5 months of the year. Emerging Market exposure offset Currency and Commodity weakness, with the HFRI Emerging Markets Index gaining +3.3 percent for December and +10.3 percent for 2012.

Fixed Income-based Relative Value Arbitrage (RVA) led hedge fund strategy performance for 2012, with the HFRI Relative Value Index gaining +10.0 percent, inclusive of a gain of +0.7 percent for December. RVA strategies include exposure to various Arbitrage and Credit Multi-Strategy funds, including Corporate, Convertible, Sovereign, Asset-Backed and Volatility arbitrage strategies. RVA has continued to attract investor capital in recent quarters with steady, consistent performance; the RVA Index has posted gains in 41 of 48 months since December 2008. RVA also led hedge fund strategy performance in 2011 and 2009, trailing only Event Driven in 2010. The HFRI FI: Asset Backed Index led all hedge fund sub-strategies for 2012 with a gain of +16.5 percent, as continued low risk-free rates, tightening credit spreads and bond purchases through quantitative easing programs were all supportive performance trends during the year.

"With the conclusion of 2012, the hedge fund industry has evolved and advanced for four years since the Financial Crisis in December 2008, with powerful trends continuing to define and shape the significance and influence of the hedge fund industry on financial markets, asset pricing and investors in 2013," stated Kenneth J. Heinz, President of HFR, "The hedge fund industry is now larger, more sophisticated, more accessible, more global, more diversified, more transparent, more efficient and more capable of meeting the requirements of institutional and individual investors in 2013."

HFR

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. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  2. Asia - LGT Capital Partners: Alternatives set for continued rise in Asia[more]

    From Asianinvestor.net: More flows are likely into insurance-linked strategies, private equity and trend-following strategies/CTAs, given the benefits of such investments, argues LGT Capital Partners. Despite the numerous quantitative easing programs and bailouts of recent years, the quest for

  3. Investors yank money from hedge funds after poor performance[more]

    From Marketwatch.com: A growing exodus from hedge funds extended to two of the biggest names in the industry Tuesday, Tudor Investment Corp. and Brevan Howard, as disenchanted investors increasingly shun what was once the hottest place to put money. The funds’ problem is clear: They just aren’t perf

  4. Banks look at hedge funds differently - and it should matter to allocators[more]

    From Valuewalk.com: Looking at two bank reports on the same topic can often yield interesting results. There are times when bank research is best viewed from the standpoint of how their analysis does or does not correlate with one another. Regarding hedge fund allocation decisions, one bank appears

  5. Legal - Hedge fund’s fixer kept deals flowing with bribes, U.S. says, Big four banks sued by U.S. hedge funds over BBSW, Lessons for hedge fund managers from the government's failed prosecution of alleged insider trading[more]

    Hedge fund’s fixer kept deals flowing with bribes, U.S. says From Bloomberg.com: With the Miami villa, stopovers at New York’s Plaza Hotel and millions channeled in bribes to win mining deals, Samuel Mebiame was the relationships guy in a corruption scheme that spanned continents, accord