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Alternative Market Briefing

Australian hedge funds recorded first decline since Feb-09 with performance of -1.43% in January - AFM

Thursday, March 04, 2010

From Komfie Manalo, Opalesque Asia:

Australian Fund Monitors (AFM), a Sydney-based data provider confirmed yesterday that the Australia Fund Monitor Index, an index of more than 200 funds managed from Australia recorded a loss of 1.43% in January, just as volatility returned to the global markets. Indeed, the global markets reacted negatively on news of U.S. President Barrack Obama's proposed controls on banks, including China's warning on credit growth and the Greek credit crisis.

Despite the negative growth, AFM said hedge funds once again proved to be a safe haven in times of volatility and falling markets at the sector outperformed the ASX200 by +4.75%, and the S&P500 by +2.27% for the month. At the same time 31% of funds recorded a positive performance for January 2010.

“The pattern of hedge funds remains pretty constant, as indicated by their results compared with the best, and worst months for the ASX200. Although not immune to losses, the average negative performance of hedge funds in AFM’s index was -1.49% during the 20 worst months on the ASX against the ASX itself which averaged a monthly loss of -5.28%,” AFM said in its monthly review.

Hedge fund indices in January January generated mixed results for hedge funds across the globe. The Credit Suisse/Tremont Hedge Fund Index returned 0.17% for the month despite market corrections (see Opalesque Exclusive ......................

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