Tue, Apr 21, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hennessee Hedge Fund Index increased +2.46% in February (+2.18% YTD)

Monday, March 17, 2014
Opalesque Industry Update - Hennessee Group LLC announced today that the Hennessee Hedge Fund Index increased +2.46% in February (+2.18% YTD), while the S&P 500 gained +4.31% (+0.60% YTD), the Dow Jones Industrial Average rose +3.97% (-1.54% YTD), and the NASDAQ Composite Index jumped +4.98% (+3.15% YTD). Bonds were positive on the month, as the Barclays Aggregate Bond Index increased +0.53% (+2.02% YTD).

"The Hennessee Hedge Fund Index was up +2.46% for February with the top three strategies for the month being Healthcare and Biotech (+4.14%), Distressed (+3.72%) and International (+3.29%).” commented Charles Gradante, Co-Founder of Hennessee Group LLC. "The bottom three strategies for the month were Short Biased (-2.34%), Market Neutral (-0.02%) and Convertible Arbitrage (+0.19%).”

"Risk assets reversed course again in February as volatility, measured by the VIX, subsided and market enthusiasm was restored.” commented Charles Gradante, Co-Founder of Hennessee Group LLC. "Investors stepped back into the market after January’s selloff and shrugged off disappointing European PMI data, a continued decrease in bank lending and emerging market tensions.”

Equity long/short hedge funds were positive in February, as the Hennessee Long/Short Equity Index gained +2.81% (+3.13% YTD). The best performing sectors were consumer staples (+6.69%), health care (+6.09%), and consumer discretionary (+5.95%), while underperforming sectors were energy (-1.04%), telecommunication services (+2.80%) and information technology (+2.94%). U.S. stocks reached record highs during February despite weak macro economic data.

“Managers are not changing their net long bias as there is no competition for equities and stock buybacks continue reducing supply.” reported Charles Gradante.

“Managers continue to maintain bullish reporting to Hennessee that ‘bull markets don’t die of old age. Bull markets end with a recession, excessive valuations or a fat tail event’.” reported Lee Hennessee, Co-Founder of Hennessee Group LLC.

The Hennessee Arbitrage/Event Driven Index rose +1.83% in February (+2.50% YTD). The Barclays Aggregate Bond Index gained +0.53% (+2.02% YTD) as interest rates were modestly lower in February. High yield increased as the Merrill Lynch High Yield Master II Index increased +2.00% in February (+2.76% YTD). High yield spreads decreased rather dramatically, losing 40 basis points to end the month 381 basis points over treasuries. The Hennessee Distressed Index jumped +3.72% in February (+4.54% YTD) on the heels of a strong January return for the index. The Hennessee Merger Arbitrage Index gained +1.81% in February (+2.04% YTD) as the environment for M&A remained strong. The Hennessee Convertible Arbitrage Index was modestly higher, gaining +0.19% in February (+1.98% YTD).

The Hennessee Global/Macro Index gained 2.53% in February (+0.47% YTD). The Dow Jones UBS Commodity Index reversed course and jumped +6.23% (+6.54% YTD), while the MSCI ACWI Index gained +4.65% (+0.39% YTD) and the MSCI EAFE Index gained +5.35% (+1.06% YTD). The Hennessee International Index gained +3.29% in February (+0.33%). Large gains in Ireland, Denmark, Greece, Portugal and Finland far outweighed losses in Japan, Russia, Hungary and Mexico. Emerging markets were mostly positive for February, as the MSCI Emerging Market Index rose +3.19% (-3.62% YTD), while, the Hennessee Emerging Market Index gained +2.14% (-0.20% YTD). Emerging markets continued to underperform developed markets for the year as investors continue to see considerable growth and inflation risks in these markets. The Hennessee Macro Index rose +2.65% for the month of February (+0.83% YTD).

Fixed income managers were modestly positive in February as bond yields were relatively flat for the month with the 10-Year U.S. Treasury ending the month at 2.66%, down 1 basis point from 2.67% in January. Commodities were strong for the month, with gold rising +6.58%, silver jumping +10.61% and palladium gaining +5.55% for the month. The U.S. Dollar was relatively weak against major currencies, losing over -0.50% versus the Euro, -0.88% versus the British Pound, -0.25% versus the Japanese Yen and -0.39% versus the Canadian Dollar. Oil rose in February, with WTI gaining +5.23% and European Brent Blend Crude rising +2.18%. Natural gas continued to surge, jumping +23.46% for the month.

Hennessee Group

Press Release

BM

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. Studies - Fund managers bullish on equities, alternative asset classes, Hedge funds starting to spurn emerging markets, Insurance companies take aggressive approach to hedge funds despite restricted exposure[more]

    Fund managers bullish on equities, alternative asset classes From Benefitnews.co: Asset allocation and risk continue to be the top issues for institutional investors in 2015 and, while nobody is sure what the economy will do in 2015, investment fund managers remain positive about investm

  2. Investing - New hedge fund strategy: Dispute the patent, short the stock, David Einhorn bets on AerCap as leasing company avoids turbulence, Top hedge funds reveal these best investing ideas, Hedge funds bet big on PetSmart price bump, Victory Park Capital increases investment in upstart to $500m[more]

    New hedge fund strategy: Dispute the patent, short the stock From WSJ.com: A well-known hedge-fund manager is taking a novel approach to making money: filing and publicizing patent challenges against pharmaceutical companies while also betting against their shares. Kyle Bass, head of Hay

  3. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  4. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  5. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

 

banner