Sun, Feb 7, 2016
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. How Einhorn survived a nightmare year[more]

    From Bloomberg.com: Even when a hedge fund has an awful year, which was the case for David Einhorn's Greenlight Capital, there are lessons to be learned. Many funds would have had a tough time surviving a year like Einhorn experienced in 2015, when all the stars seemed to align against him and Green

  2. Legal - Hedge fund founder wins early release in U.S. insider trading case, Gramercy seeking $1.3 billion from Peru over land-bond dispute[more]

    Hedge fund founder wins early release in U.S. insider trading case From Reuters/Streetinsider.com: Former hedge fund manager Doug Whitman on Tuesday won a reprieve from serving the remainder of his two-year sentence for insider trading after several judges expressed skepticism that his 2

  3. Investing - David Einhorn finds a winner in Michael Kors[more]

    From Thestreetinsider.com: Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking pro

  4. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  5. Computer-driven hedge funds make money during January’s selloff[more]

    Komfie Manalo, Opalesque Asia: Commodity trading advisers (CTAs) that use computer programs to guide how they trade, made millions of dollars during last month’s market selloff on the back of declining oil prices and global equities and big moves in currencies. Data provider