Thu, Jul 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds end year positively but fail to keep pace with the stock market in 2012

Friday, January 18, 2013
Opalesque Industry Update: In December, stocks confirmed the rebound of the previous month with a significant progression of the S&P 500 index (+0.91%), according to EDHEC-Risk. Implicit volatility (18%) was slightly on the rise but still in the low range. For the full year, the S&P 500 generated a comfortable 16% return, considerably above its average performance since the inception of the EDHEC-Risk Alternative indices (January 1997).

On the fixed-income market, a mixed situation prevailed: convertible bonds (+2.04%) remained on the rise whereas regular bonds (-0.40%) registered their worst score in four consecutive months of losses. After last month’s setback, the credit spread (+0.44%) grew again. Commodities (-0.53%) dropped slightly, wiping out its remaining profits of 2012. The dollar (+0.19%) recorded a third consecutive month of progress.

In this context, all hedge fund strategies (except Short Selling) surprisingly managed significant gains. Despite the profits of the stocks market, the Convertible Arbitrage strategy (+1.05%) managed profitability, backed by the rises in risky bonds and the credit spread. Despite the falls in both commodities and regular bonds, the CTA Global strategy (+0.63%) achieved a positive performance.

Benefiting from the good performance of stocks, both the Long/Short (+1.60%) and Event Driven (+1.90%) strategies yielded comfortable profits. With a more limited exposure to stocks, the Equity Market Neutral strategy (+0.39%) naturally scored moderately.

Globally, in December, the Funds of Funds strategy (+1.09%) slightly outperformed the S&P 500 index. However, over the year, none of the hedge fund strategies could keep up with the stock market.

EDHEC Risk

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. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass