Wed, Apr 25, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

ZHAW: An encouraging first quarter 2013 for funds of hedge funds

Friday, May 10, 2013
Opalesque Industry Update - Funds of hedge funds (FoHF) in Switzerland closed the first quarter on an encouraging note, and the HFRI Fund of Funds Composite Index gained 3.3% in the period under review. As a result, the last three quarters ended positively. So far there is no indication for any setback in Q2 2013 either: April was the sixth consecutive positive month, and global Funds of Hedge Funds (up 1.1%) even outperformed global Single Hedge Funds (HFRI Fund Weighted Composite Index gained 0.7% over the same period of time).

In the first quarter 2013, rising equity markets and growing investor risk tolerance have had a positive impact on the market sentiment. The hedge fund industry was able to take advantage of the risk-on environment. As a result, the HFRI Fund of Funds Composite Index gained 3.3%. The 17-factor model developed by ZHAW/hedgegate indicates that once more the positive performance was to a large extent based on the convincing momentum in equity markets. The MSCI World Index, up 6.9% in Q1 2013, continued to outperform the MSCI Emerging Markets Index. The regional pattern was far from homogeneous: whereas Japanese and US stocks reported double-digit returns, in Europe the development was rather mixed. Commodities continued to disappoint somewhat as well, following an already weak performance last year, exerted by declining raw material prices.

These performance patterns are also mirrored in the development of hedge fund returns: Based on first-quarter returns, the list of the top FoHF registered on hedgegate is dominated by funds with a multi-strategy, Asia or macro approach. Encouragingly, only a few funds reported a marginally negative performance.

Global hedge fund AuM with new record in Q1 2013
With a net inflow of USD 15.2 billion in Q1 2013, the hedge fund industry has attracted nearly half as much capital as in the full year 2012. As a result, global hedge fund assets have reached USD 2,375 billion. On the other hand, the increase of worldwide FoHF assets to USD 650 billion was purely performance-driven, with a similar development in the Swiss FoHF industry.

Outlook
When comparing the first quarter 2013 with Q1 2012, there are amazing similarities. However, whereas the development in Q2 2012 was not satisfactory, so far there is no indication for a setback in Q2 2013. April was the sixth consecutive positive month, and global Funds of Hedge Funds (up 1.1%) even outperformed global Single Hedge Funds (HFRI Fund Weighted Composite Index gained 0.7% over the same period of time). So far the “sell in May and go away” exchange rule has not proved true.

Press release

Centre for Alternative Investments & Risk Management, ZHAW Zurich University of Applied Sciences, www.zai.zhaw.ch

Source of information: www.hedgegate.com/ZHAW, in cooperation and with the support of the TCF (The Swiss Council of Hedge Funds). The TCF consists of the following reputated providers: Banque Privée Edmond de Rothschild SA, Banque SYZ & CO SA, BSI/Thalìa SA, ISPartners Investment Solutions AG, Man Investments, Mirabaud & Cie Banquiers Privés, Pictet & Cie, Reichmuth & Co Investmentfonds AG, UBS AG.

Bg

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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its