Sat, Feb 25, 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. Legal - Fannie, Freddie shares dive after U.S. appeals court ruling[more]

    From Reuters.com: Shares of Fannie Mae and Freddie Mac tumbled more than 30 percent on Tuesday after a U.S. appeals court shut down efforts by hedge funds and other investors to pursue numerous legal claims accusing the U.S. government of seizing their profits following taxpayer bailouts. By a

  2. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  3. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  4. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  5. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s