Sun, Sep 21, 2014
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 0.93% in June (+1.77% YTD)

Thursday, July 03, 2014
Opalesque Industry Update - Global financial markets closed the first half of 2014 with gains across most regions in June, as implied volatilities fell sharply on improving economic growth concentrated in developed markets. Equity markets gained across most sectors and regions, with US sector gains led by Commodity sensitive, Oil Services, Technology and Biotechnology, with strong performance concentrated in small cap and growth names, though large-, mid-cap and value also gained for the month.

European and Asian equities posted mixed performance, with European gains across Spain, Russia and the Netherlands offset by declines across France, Italy, Germany and the UK. Similarly, Asian gains were led by Japan & Thailand, with China posting a modest gain while Australia and Singapore declined. Gold, Silver and other metals posted sharp increases for the month as oil sustained early month gains on increased Middle East geopolitical tensions. Agricultural commodities experienced a volatile month on unexpected US weather patterns, with large gains in Hogs, Cattle and Lumber offset by sharp declines in Wheat, Corn & Cotton. Interest rates rose on improving economic conditions in US & Europe, with the US yields rising as the curve flattened on increases in shorter dated yields; European yields were mixed with increases across UK Gilts offset by declines across Germany, France, Spain and Italy.

The US dollar declined across the board for the month of June, posting sharp declines against the British Pound Sterling, New Zealand Dollar and Russian Ruble, while posting more modest declines against the Euro, Yen, Brazilian Real and Canadian Dollar. Hedge funds posted gains for the month of June, with the HFRX Global Hedge Fund Index gaining +0.93%, the HFRX Market Directional Index posted a gain of +2.02%.

HFRX Event Driven Index gained +1.57% for the month of June, with positive contributions from Distressed/Restructuring and Equity Special Situations strategies; the Index leads all hedge fund strategies with a YTD gain of +4.42%. HFRX Distressed Index gained +2.28% in June, the largest gain since January 2012, leading all ED substrategies for the year with a gain of +6.68%. HFRX Distressed had contributions from restructurings across Communications, Financials, Energy and Consumer sectors in the US.

HFRX Special Situations Index posted a gain of +1.38%, with contributions from core positioning in American Realty, Hertz, Forest Labs, Covidien, Diamond Resorts, and Athabasca Oil. HFRX Merger Arbitrage Index gained +0.16% for the month, with mixed contributions from transactions in Hillshire /Pinnacle Foods, GE/Alstom, Actavis/Forest Labs and Tower Financial/Old National Bancorp.

HFRX Equity Hedge Index posted a gain of +1.52% for the month of June, with positive contributions from Fundamental Growth, Value and Market Neutral strategies. HFRX Fundamental Growth Index posted a gain of +3.69%, its second largest monthly gain since February 2012, with contributions from exposure to Global Healthcare, Emerging Asia and small-cap US equities. HFRX Fundamental Growth leads EH substrategies for 2014 with a gain of +5.33%. HFRX Fundamental Value Index gained +0.70% with contributions from Communications, Financials and Industrials, while HFRX Market Neutral Index gained +0.42%, with gains across factor-based models and fundamental and trading oriented strategies.

HFRX Relative Value Arbitrage Index posted a gain of +0.29% for the month of June, with contributions from Fixed Income and Credit Multi-Strategy exposures. The HFRX Fixed Income Credit Index gained +0.56% with contributions from Distressed, Corporate Credit and Emerging Markets strategies, while the HFRX Multi-Strategy Index posted a gain of +0.39% with positive contributions from Global Fixed Income, Corporate Credit and Equity strategies. HFRX MLP Index gained +6.28% for the month, its largest gain since January 2013, bringing the 1H14 gain to +16.7%, driven by continued demand for yield generating energy infrastructure partnerships.

HFRX Macro Index posted a gain of +0.08% for the month of June, with positive contributions from Emerging Markets and Discretionary Global strategies. The HFRX Emerging Markets Composite Index posted a gain of +1.89%, with gains concentrated in Asian equity exposure. HFRX Macro: Systematic Diversified Index posted a gain of +0.06%, with mixed contributions from fixed income, equity and currency exposures. Macro Discretionary strategies posted gains with contributions from emerging markets and European exposures, which were only partially offset by global fixed income 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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali