Wed, May 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRX Global Hedge Fund Index up 0.04% mid-May (+0.42% YTD)

Monday, May 19, 2014
Opalesque Industry Update - Global financial markets traded in a narrow range through mid-May, as implied volatility fell on subsiding geopolitical tension, though uncertainty remained high. Equity markets posted gains across most regions and sectors, recovering May declines, though small cap exposure continued to lag, posting declines through mid-month. US sector gains were led by Cyclical, Semiconductor, Energy and REIT exposure, which were partially offset by Oil Services and Commodity Sensitive exposures. Emerging Market equities posted gains led by a sharp recovery in Russia, while Brazil, China and the Middle East also posted gains through mid-month.

European equities were led by gains in Germany, the UK, Spain and the Netherlands, with these only partially offset by declines in Italy; Asian equity gains were again led by India, with China and the Philippines also posting gains. Government bond yields were little changed through mid-May, with US & European issues posting small declines while corporate credit spreads tightened. The US dollar posted a sharp gain against the Euro complemented by narrow gains against the British Pound and Japanese Yen, the Dollar fell against Emerging Market currencies including the Brazilian Real, South African Rand, Chilean Peso and the Russian Ruble. Commodity gains were led by Copper, Oil & Sugar, with these offset by declines in Natural Gas, Coffee and Cattle. Hedge funds posted a narrow gain through mid-month, with the HFRX Global Hedge Fund Index gaining +0.04%.

HFRX Relative Value Arbitrage Index posted a gain of +0.51% through mid-May, with contributions from Multi-Strategy managers and mixed performance from Convertible Arbitrage strategies. The HFRX Multi-Strategy Index posted a gain of +0.66% with contributions from Global Credit, Equity and Commodity strategies, while HFRX Convertible Arbitrage Index declined -0.2% as credit gains were offset by declines in volatility positions and exposure to Asian convertibles. HFRX Fixed Income Credit Index gained +0.40% with contributions for Global Rates and Corporate Credit strategies, while HFRX MLP Index gained +1.14% through mid-month on continued demand for yield generating energy infrastructure partnerships.

HFRX Macro Index posted a gain of +0.16% through mid-May, with contributions from Global Rates and Emerging Markets strategies partially offset by mixed performance in systematic managers. Macro Discretionary strategies posted gains with contributions from fixed income, currency and emerging markets exposures. HFRX Macro: Systematic Diversified Index declined -0.21% through mid-May with negative contributions from short term trending models only partially offset by long term models.

HFRX Event Driven Index posted a narrow gain of +0.07% through mid-May, with positive contributions from Distressed/Restructuring strategies partially offset by declines in Equity Special Situations and Merger Arbitrage managers. HFRX Distressed Index gained +0.53% from restructurings across Consumer and Communications sectors in the US. HFRX Merger Arbitrage Index posted a narrow decline of -0.07%, with contributions from transactions in Hillshire/Pinnacle Foods, Pfizer/AstraZeneca, Suntory/Beam, Actavis/Forest Labs and Tower Financial/Old National Bancorp. HFRX Special Situations Index posted a modest decline -0.08%, with contributions from core positioning in American Realty, Hertz, Lamar, McKesson, Penn West Petroleum, Sensient Technologies, Vivendi and Athabasca Oil.

HFRX Equity Hedge Index posted a decline of -0.51% through mid-May, with mixed performance in Fundamental and Market Neutral managers and negative contributions from small cap exposures. HFRX Fundamental Value Index declined -0.21% with declines concentrated in positioning in Technology and Communications equities only partially offset by European, Consumer and Japanese exposure. HFRX Fundamental Growth Index posted a decline of -1.15% with contributions from exposure to small-cap equities. HFRX Market Neutral Index declined -1.07%, with mixed contributions across factor-based models and fundamental and trading oriented strategies.

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. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven