Tue, Sep 27, 2016
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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  5. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco