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Matthias Knab, Opalesque: The Scotiabank Canadian Hedge Fund Index (SCHFI) demonstrated solid performance in the first half of 2024, highlighting the resilience of Canadian hedge funds in a challenging market environment. The asset-weighted index closed June up 7.23% year-to-date, outpacing both the S&P/TSX Composite (+4.38%) and the DEX Universe Bond Index (-0.33%).
Key Highlights:
Strategy Performance: Equity-focused strategies led the pack, with the Equity Hedge Index up 7.78% YTD on an asset-weighted basis. The Multi-Strategy Index also showed strong results, gaining 7.04% in the same period.
Market Neutral Strategies Shine: The Equity Market Neutral Index posted an impressive 8.75% YTD return, demonstrating the value of non-directional strategies in uncertain markets.
Credit Strategies Stable: The Credit Focused Index maintained steady performance, returning 5.28% YTD, showcasing the importance of diversification in fixed income allocations.
Monthly Volatility: June saw mixed results across strategies, with the asset-weighted SCHFI up 1.08% for the month, while the equal-weighted version declined 0.55%. This disparity highlights the impact of larger funds on overall index performance.
Long-term Performance: The SCHFI continues to demonstrate strong risk-adjusted returns, with a 5-year annualized Sharpe ratio of 0.64 for the asset-weighted index, compared to 0.40 for the S&P 500 Total Return index.
Industry Implications:
The strong performance...................... To view our full article Click here
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