Thu, Jul 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRX Global Hedge Fund Index gains 1.59% in February (+1.34% YTD)

Wednesday, March 05, 2014
Opalesque Industry Update - Global financial markets posted gains for February, despite increasing geopolitical tensions arising from secular unrest in Ukraine. Global equity markets posted broad-based gains recovering prior month declines, led by US Technology, Cyclical, Healthcare and Commodity-sensitive exposures. European and Asian equities also posted gains, with European gains led by France, Italy, Sweden and the UK, while Asian gains were led by Hong Kong, the Philippines, Australia and Thailand. Despite these, Emerging Market equities across Latin America were mixed, China and the Middle East posted gains while Russian equities posted declines.

US and developed European yields were little changed against the prior month end, with bond yields measuring small declines in Italy and Spain. The US Dollar declined against most currencies, reversing much of the prior month's gains, falling sharply against the British Pound Sterling and Euro; the US Dollar also fell sharply against Emerging Market and Commodity currencies, with the largest monthly declines posted against the Indonesian rupiah, New Zealand Dollar, South African Rand and Brazilian Real.

The US dollar posted a late month gain against the Chinese RMB, while the virtual currency Bitcoin fell sharply in value for the month. Commodities across Energy, Metals and Agriculturals continued to post strong gains, led by sharp gains in Coffee, Gold, Oil, Silver, Platinum, Hogs and Soybeans. Merger activity remained robust, led by Facebook's $19 billion acquisition of WhatsApp. Hedge funds posted gains with the HFRX Global Hedge Fund Index gaining +1.59% for the month, while the HFRX Market Directional Index gained +2.83%.

HFRX Equity Hedge Index posted a gain of +2.67% in February, the best monthly gain since December 2010, with broad based contributions across most EH strategies. HFRX Fundamental Growth Index posted a leading gain of +4.16%, best performance for the Index since September 2010. HFRX: EHFG Index leads all Indices with a +4.54% YTD gain, with contributions from exposures to Global Healthcare and European, Asian and US mid- and small-cap equity. HFRX Fundamental Value Index gained +2.22% with contributions from exposures to Financials, Consumer and European large-cap equity. HFRX Market Neutral Index gained +0.73%, with gains across mean reverting, factor-based models as volatility declined and dispersion narrowed.

HFRX Event Driven Index posted a gain of +2.55% in February, the best performance since January 2013, with significant contributions from Equity Special Situations and Distressed/Restructuring strategies. Merger activity remained robust, led by Facebook's $19 billion acquisition of WhatsApp. HFRX Special Situations Index gained +2.99%, also the best performance since January 2013, with contributions from core positioning in American Realty, Time Warner, Sensient Technologies, Apple, Herbalife, eBay, Jos A. Bank, Ferro and American Airlines. HFRX Distressed Index posted a gain of +1.59%, its best performance since February 2012, with contributions from restructurings across Financials, Communications and Consumer sectors in the US and Europe.

HFRX Merger Arbitrage Index posted a modest gain of +0.07%, with mixed contributions from transactions in Suntory/Beam, CapitalSource/PacWest Bancorp, Sterling Financial/Umpqua Corp, Avago Technologies/LSI and Tower Financial/Old National Bancorp.

HFRX Relative Value Arbitrage Index posted a gain of +1.33% in February, its best performance since January '13, with contributions across Convertible Arbitrage and Multi-Strategy managers. HFRX Convertible Arbitrage Index gained +1.51%, the best performance since May 2013, as credit gains offset volatility declines, while HFRX RV: Multi-Strategy Index and HFRX Fixed Income Credit Index posted gains of +1.28% and +1.36%, respectively, also their best performance in more than a year. HFRX MLP Index gained +1.22% on strong demand for yield generating energy infrastructure partnerships.

HFRX Macro Index posted a decline of -0.75% in February, with contributions from Currency, Fixed Income and Emerging Markets strategies, offset by trend-following CTA managers. HFRX Macro: Systematic Diversified Index declined -1.42% as gains in equities and commodities were offset declines in currency and fixed income. HFRX Emerging Markets Index posted a gain of +0.80% with contributions from Asian convertible and equity strategies, paring prior month losses.

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. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  3. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  4. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  5. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

 

banner