Thu, Oct 8, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Morningstar hedge fund performance up 1.2% in April, 5.1% year to date

Monday, June 03, 2013
Opalesque Industry Update - Morningstar has reported preliminary hedge fund performance for April 2013 as well as estimated asset flows through March.

The Morningstar MSCI Composite Hedge Fund Index, an asset-weighted composite of nearly 1,000 hedge funds in the Morningstar Hedge Fund database, rose 1.2% in April and 5.1% year to date. Over the trailing 12 months, the index rose 8. 0 %.

“ April saw global stocks and bonds rally, while commodity prices sharply declined, ” Philip Guziec, alternative invest ments st rategist at Morningstar, said. “ The trending markets helped long - short equity and fixed - income strategies as well as momentum strategies .” Global equity markets rallied in April driven largely by investors’ conviction that central banks will continue to provide excess liquidity. The Bank of Japan, for example, announced th at it will pursue quantitative easing, doubling the country’s monetary base over the next two years.

Rising Japanese stocks helped lift the Morningstar MSCI Asia Pacific Hedge Fund Index 2.1 % in April.

Expectations of more liquidity also pushed down interest rates, which benefited duration-sensitive fixed income securities. The Morningstar Long Short Credit Hedge Fund Index rose 1.0 % in April. Its performance was also enhanced by a decline in correlations among securities to levels not seen since mid - 2008, as evidenced by the CBOE’s S&P 500 Implied Correlation Indexes. In contrast, relatively weak economic reports from China pushed down commodity prices , such as oil, gold, and silver.

Funds in the Morningstar MSCI Directional Trading Hedge Fund Index, which trade both upward and downward price trends, were able to capitalize on these declines. The Morningstar MSCI Directional Trading Hedge Fund Index rose 1.4 % in April. The worst - performing hedge fund index in April was the Morningstar MSCI Short Bias All Size index, which dove 2.6 % as most stock markets rallied.

In April 2013 , single - manager funds in Morningstar’s Hedge Fund Database lost $770 million in assets. Hedge funds in the Multistrategy category saw the greatest outflows in March , losing $ 1.1 billion. After multiple years of poor performance, the fund outflows continued for Systematic Futures hedge funds, which lost $ 780 million. Global Macro hedge funds gain the most assets, adding $958 million, followed by long/short equity strategies, which gained 331 million. Over the trailing 12 months, investors have pulled $ 6.0 billion in aggregate from hedge funds in the Morningstar database . About $ 4.8 billion were withdrawn from Managed Futures hedge funds alone over the same period , while $4.5 billion were added to Global Macro hedge funds .

Press release


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. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  4. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  5. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with