Opalesque Industry Update - UCITS compliant Hedge funds posted rose in the month, with the HFRU Hedge Fund Composite Index gaining +1.02% for September. |
• HFRU Equity Hedge Index posted a gain of +2.21% for September, 2013, the strongest gain since July 2012, with contributions from Emerging Markets with gains concentrated in Turkey, India, Brazil and Emerging Europe equities. Exposure to US, Japan and Technology also contributed to gains.
• HFRU Event Driven Index posted a gain of +0.90% for September, with positive contributions from European Equity Special Situations and Emerging Markets Fixed Income strategies; Global & European M&A also had Index performance as credit tightened, a number of IPOs received strong investor interest and US corporate issuance set a monthly record.
• HFRU Relative Value Arbitrage Index posted a gain of +0.47% for September, with gains in Emerging Markets Fixed Income, European and Japanese Convertibles and Real Estate exposures, as yields fell on continued US fed bond purchases and record US corporate issuance contributed to gains.
• HFRU Macro Index posted a modest decline of -0.07% for September, with positive contributions from Currency, Global Discretionary and Emerging Markets strategies offset by declines in Systematic & Commodity exposures on commodity weakness and short fixed income exposures.
Financial markets gained in September as the US Federal Reserve elected not to taper its bond purchases, while into month end, investors prepared for US government shutdown over the budget bill impasse. Global equity markets posted broad-based gains for September, recovering August losses despite declining into month end, with gains across US, European, Asian & Emerging Markets regions. German election results contributed favorably to investor risk tolerance, with European equities led by gains in Germany, Spain, France, Russia & Italy. Sector gains were led by Technology, Cyclicals, Energy & Financial, with leadership also from small cap & growth equities. Asian and Emerging Markets also gained for the month, with leadership from Japan, China, Brazil, Hong Kong, Korea & Thailand. The US dollar posted sharp declines against most currencies include the British Pound and the Euro; the Dollar also declined again the Brazilian Real, Australian Dollar and Korean Won. US yields fell as the yield curve steepened on continuation of Fed bond purchases, yields also declined across France, Germany, Spain & the Netherlands. US corporate issuance reached record level in September, highlighted by Verizon, as issuers positioned for higher future borrowing costs. Commodities posted declines for the month as global tensions over supply concerns related to Syria & Iran eased, with declines led by Oil, Gold, Platinum & Silver. Agricultural commodities were mixed for the month, with sharp declines in Corn & Soybeans offset by gains in Sugar & Wheat.
Comments reference performance as posted on October 2, 2013