Fri, Jul 25, 2014
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro