Thu, Aug 17, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRX Global Hedge Fund Index down -0.86% in August (+3.30% YTD)

Thursday, September 05, 2013
Opalesque Industry Update, for New Managers - Opalesque Industry Update - Global financial markets declined in August as Emerging Market equities and currencies extended prior month declines, and investors positioned for volatility associated with reduction of stimulus by the US Federal Reserve and uncertainty over possible military conflict in the Middle East. US equities posted the worst monthly decline for 2013, with declines across most sectors led by Large Cap, Financials, Real Estate, Technology and Healthcare. European equities also declined, led by the UK, France & Germany, while Asian equities were mixed with losses in Japan offset by gains in China & Australia.

Losses across Emerging Markets were widespread across the Middle East, Turkey, Egypt, India, Russia & Thailand, while Brazil and China posted gains partially offsetting prior month losses. Despite the weakness, US government bond yields rose with increases concentrated in shorter maturities as the yield curve flattened. Yields also rose across UK Gilts, German Bunds, the Netherlands and France, while both investment grade and high yield credit widened.

The US Dollar was mixed against developed market currencies, rising against the Euro while falling against the British Pound Sterling, however Emerging Market currencies continued to fall against the US Dollar, with declines led by the Indian Rupee, Mexican Peso, Brazilian Real and South African Rand. Energy and Metals commodities gained on the prospects of supply disruptions, led by gains in Oil, Natural Gas, Silver, Gold and Platinum, while Agricultural commodities generally posted declines led by Coffee, Sugar, and Wheat & Live Hogs.

Hedge funds posted declines for the month with the HFRX Global Hedge Fund Index posting a decline of -0.86% while the HFRX Equal Weighted Strategies Index declined -0.71%. HFRX Relative Value Arbitrage Index declined -0.13% in August, with contributions from Commodity Arbitrage and Convertible strategies offset by weakness in Global Fixed Income exposure. The HFRX RV Multi-Strategy Index posted a modest decline of -0.08% as gains in Commodity Arbitrage strategies were offset by Credit exposures. The HFRX RV: Convertible Arbitrage Index and the HFRX Fixed Income Credit Index both declined -0.49% as credit spreads widened, with weakness in credit, interest rate sensitive positions & Asian convertibles only partially offset by volatility and gamma positions.

HFRX Event Driven Index posted a decline of -0.54% in August, with positive contributions from Distressed strategies offset by weakness in equity and credit strategies. The HFRX Distressed Index gained +0.09% for the period with contributions from various restructurings across Energy, Industrial & Consumer Durable exposures, while the HFRX Merger Arbitrage Index posted a modest decline of -0.03%, with contributions from transactions in Sprint/Clearwire, Akorn/Hi-Tech Pharmacal, MAA/Colonial Properties, First M&F/Renasant, and Thermo Fisher/Life Technologies. The HFRX Special Situations Index declined -0.78% with contributions from exposure to transactions in Industrial and Non-Cyclical sectors and specific contributions from core positioning in Apple, J.C. Penney, Tribune Co., American Airlines, US Airways, and Penn West Petroleum.

HFRX Macro Index posted a decline of -0.84% in August, with positive contributions of Multi-Strategy managers offset by mixed performance of quantitative Systematic CTA and Emerging Market exposures. The HFRX Macro: Systematic Diversified Index declined -0.08% with positive contributions from Commodity exposure offset by Currencies and Fixed Income exposures. The HFRX Emerging Markets Index posted a decline of -1.80% with weakness across Currencies, Emerging Asia and Latin America.

HFRX Equity Hedge Index posted a decline of -1.89% in August, with weakness concentrated in US and European equities. The HFRX Fundamental Value Index and the HFRX Fundamental Growth Index declined -2.10% and -1.55%, respectively, with weakness from exposure to large and small cap US, European and Emerging Markets equities only partially offset by short exposures.

(press release)

km

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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  3. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  4. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos

  5. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq