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Alternative Market Briefing

Funds of hedge funds up 0.3% in Q3 with a small plus

Thursday, November 13, 2014

Komfie Manalo, Opalesque Asia:

Despite some negative headlines, developments in the 3rd quarter of 2014 were again sufficient to result in a plus sign. Thanks to a strong August with an increase of almost one percent, the HFRI Fund of Funds Composite Index was up 0.3% on the previous quarter. Funds of hedge funds (FoHF) have thus clearly outperformed stricken shares.

The HFRI Fund of Funds Composite Index was down -0.83% (est.) in October, up 1.58% YTD and up 4% in the last 12 months.

The 17-factor model developed by ZHAW/Hedgegate showed that the restrained performance in the 3rd quarter of 2014 was due primarily to the clear corrections on the global share and bond markets. The ZHAW is one of the leading universities of applied sciences in Switzerland. Hedgegate is a free accssible database for Swiss funds of hedge funds.

At the same time, the more modest prospects for the global economy, coupled with a decline in demand from emerging markets and the resurgent US dollar, led to heavy losses on the commodities markets - a situation that CTA managers, in particular, were able to successfully exploit for their trading strategies.

ZHAW also said there was a marked shift in investors' interest in the different invest......................

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