Opalesque Industry Update - Global financial markets posted strong gains in February, as US & UK treasury yields posted a sharp increase and US equities posted the strongest monthly gain since October 2011. Global equity markets gains were led by Technology & Energy as the Nasdaq composite approached a 15 year high, while regional gains were led by Emerging Markets and Europe, with strong contributions from Russia, Argentina, Brazil and Australia, as well as France, Germany, Italy & Switzerland. Energy commodities experienced a strong recovery after several months of sharp losses, led by Brent Crude Oil; Copper gained though other Metals commodities fell for the month, while gains in Cotton & Soybeans were offset by losses in Coffee & Sugar across Agricultural commodities. Sovereign & treasury yields in US & UK rose for the month, though pared increases into month end; US high yield credit tightened. The US Dollar was mixed for the month, posting declines against the Russian Rouble, British Pound Sterling and Canadian Dollar, which were offset by gains against the Japanese Yen, Swiss Franc and Brazilian Real. UCITS compliant Hedge Funds posted gains for February with the HFRU Hedge Fund Composite Index posting a gain of +1.76%. HFRU Equity Hedge Index posted a gain of +2.61% for February, the best monthly performance since January 2012 and leading all HFRU Indices YTD with a gain of +4.88%. Gains from US and European strategies were complemented by exposure to Russia, Eastern Europe and Healthcare equities. HFRU Event Driven Index posted a gain of +1.73% for February, the best monthly performance since the inception of the index, as equities, credit and deal spreads all had positive contributions. Index performance was led by Special Situations equities, complemented by both global credit and Merger Arbitrage strategies as European, US and EM equities posted gains and credit spreads tightened. HFRU Relative Value Arbitrage Index posted a gain of +1.12% for February, the 13th gain in 14 months, as yields rose from record lows of the prior month and arbitrage spreads tightened, with contributions from Global Credit and Convertible strategies. Convergence drove gains across Credit Multi-Strategies, while Asset Backed and Yield Alternatives also had positive contributions. HFRU Macro Index posted a gain of +0.80% for February, with positive contributions across Global Discretionary and Currency strategies, as commodities posted sharp gains, while equities and fixed income yields rose. Systematic, quantitative CTA strategies produced mixed performance as models navigated trend reversals across Oil, Currencies and Fixed Income. |
Industry Updates
HFRU Hedge Fund Composite Index up 1.76% in February (+3.84% YTD)
Wednesday, March 04, 2015
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