Sat, Aug 27, 2016
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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new