Mon, Dec 18, 2017
A A A
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

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. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  3. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  4. ...And Finally - The ongoing gun saga in the U.S.[more]

    From Newsoftheweird.com: As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c

  5. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans