Tue, Sep 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

GAM reports that March was an 'encouraging month for hedge funds'

Wednesday, April 03, 2013
Opalesque Industry Update - GAM's Hedge Fund Performance Update finds that several trends in risk markets continued in March with positive performance in equities, notably in the US and Japan, continued strength in the US dollar and another month of weakening in the Japanese yen.

Hedge funds enjoyed the third consecutive month of positive performance for the year, with the HFRX Global Hedge Fund index up 0.7% for March and up 3.1% for the quarter. Gains were led by equity-centric strategies, with the HFRX strategy indices for event-driven managers and equity hedge managers up 5.3% and 5.1%, respectively for the quarter. Global macro and CTA strategies continued to deliver mixed results with some negative global macro results offsetting some strongly performing CTA managers to deliver a flat net result for the quarter for the HFRX Macro/CTA index. Relative value managers started the quarter strongly, but were subsequently only marginally positive in February and March, with the HFRX Relative Value index ending the quarter up 1.7%.

Anthony Lawler, Portfolio Manager at GAM, said: “March was another encouraging month for hedge funds with broad-based positive attribution. Many trend following CTA managers had a positive month with performance coming from long positions in the US dollar, Australian dollar, US and Japanese equities, and short positions in the Japanese yen. Equity hedge and event driven managers continued to benefit from exposure to developed market equities and to certain corporate activities and balance sheet restructurings. Within relative value and credit strategies, after a strong January, we saw continued consolidation in credit with generally small but positive contribution from managers in this space.”

“The Cyprus crisis did not cause material broad-based pain for hedge funds in March. However there is concern that this crisis is yet another symptom of the unresolved issues in the European Union, and as a result managers remain generally under-exposed to Europe. More globally, hedge fund managers are aware of the seasonal weakness in equities that we often see in a second quarter, especially after a strong start to the year. That said, equity hedge managers are generally positioned for a continuation of the strength in equities in the US and Japan, while remaining underexposed to European-centric names. In other strategies, managers continue to be positive on the opportunities in currencies and credit from both the long and the short side. Overall many managers enter the second quarter with gross exposure towards the upper end of their respective typical ranges.”

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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali