Sun, Jun 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge reports positive start to 2013 for hedge funds

Thursday, February 07, 2013
Opalesque Industry Update - Hedge funds posted excellent returns in January on the back of rising risk appetite and rallying equity markets globally. The Eurekahedge Hedge Fund Index was up 1.98% during the month, while the MSCI World Index gained 4.66%.

Key takeaways for the month of January 2013:

80% of hedge funds reported positive performance in January, compared to the 2012 monthly average of 60%

Asia ex-Japan and Eastern Europe & Russia hedge funds outperformed underlying markets, up by 5.03% and 7.67% respectively

Distressed debt hedge funds gained 3.47% in January; delivering the strongest results among the various strategies for 6 consecutive months with gains of 14% over this period

Japanese hedge funds witnessed the strongest January return on record

Relative value funds continued their winning streak into the 8th month with gains of 1.12% in January

The asset-weighted Mizuho-Eurekahedge Asia ex-Japan Long Short Equities Index was up 4.64% during the month

CTA/managed futures funds gained 1.69% in January – more than their annual 2012 return

Regional Indices

Taking the cue from performance end-December, markets continued their upward trajectory through January. Markets started trending after US leaders reached an agreement to avert the 'fiscal cliff' and were further supported by positive macro-economic data. Concerns of a global slowdown waned in the wake of upbeat news from Europe, the US and China while corporate earnings added greater impetus to the rallies.

Hedge funds across all regions posted positive returns for the month with Emerging Europe and Asian hedge funds leading the way. The Eurekahedge Eastern Europe & Russia Hedge Fund Index was up 7.67%, with funds that had exposure to the power and utilities sectors posting double-digit gains. These returns point to substantial outperformance as the RTS Stock Index gained 5.99% while the MSCI Eastern Europe Index3 was up 2.95%.

Asia ex-Japan funds also outperformed the broad Asian market indices; gaining 5.03% during the month while the MSCI Asia Pacific ex-Japan Index was up 3.02%. Top performing funds reported gains from the rallying equities, the power sector and healthy IPO activity in the region. Exposure to China was also profitable for most Asian managers – 4 out of the top 10 performing funds4 for January employed a Greater China regional mandate.

Strategy Indices

All strategic mandates posted positive returns for January with distressed debt funds delivering the strongest returns. Among the various hedge fund strategies, distressed debt has been the best performing for 6 consecutive months, gaining 14% since August 2012. The strong rebound in risk appetite since 2H 2012 and positive developments in Europe have helped to drive up the high yield and distressed debt sector – the BofA Merrill Lynch High Yield Index5 was up 1.63% in January. Among other strategies, managers investing in equities delivered the strongest returns as long/short equity managers gained 2.77% and event driven hedge funds posted returns of 1.88% during the month. CTA/managed futures funds also started the year with healthy returns, posting 1.69% in January as capital moved away from bond havens and into the stocks and commodities markets.

Press release

bc

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 Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,