Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds post 0.76% gain in July

Friday, August 05, 2011
Opalesque Industry Update - Equity markets extended declines in July as investors exhibited concern with regard to both the extension of the U.S. debt limit and continuing concerns about European sovereign debt risk. US fixed income yields fell and gold posted record gains, while the US dollar traded in a wide range over the month. The HFRI Fund Weighted Composite Index posted a gain of +0.76% for July driven by a strong contribution from Macro trend-following strategies which gained +3.57% for the month.

Reversing the declines of the prior 2 months, the HFRI Macro (Total) Index rose +2.52% for July with gains across most Macro and CTA strategies. The HFRI Macro Systematic Diversified Index gained +3.57% led by trend following gains in fixed income and commodities, including precious metals, oil and agriculturals. Discretionary and multi-strategy managers benefited from commodity gains complemented by advances in fixed income and short US Dollar positioning.

The HFRI Event Driven (Total) Index posted a decline of -0.07% for July. Equity special situations, distressed and merger arbitrage strategies experienced declines as a result of both equity and credit exposure, with the HFRI ED: Distressed Index declining by -0.05%. Low net exposure sub-strategies, including ED: multi-strategy and credit arbitrage had partially offsetting positive contribution to index performance. In the M&A space, general spread widening and losses in the media sector contributed to declines, with the HFRI ED: Merger Arbitrage Index declining -0.24% for the month.

The HFRI Equity Hedge (Total) Index declined by -0.09% in July, with gains in equity market neutral, short bias and energy/basic materials strategies narrowly offset by declines in fundamental value and technology/healthcare. The HFRI Equity Market Neutral Index posted a gain of +0.16% with continued positive contributions from quantitative factor based strategies. Fundamental Growth strategies benefited from exposure to Asia and Eastern Europe, rising by +0.34% for the month, with these partially offset by declines in Latin American exposure. Fundamental Value strategies declined -0.40% from weakness in the US large cap and global equities.

The HFRI Relative Value (Total) Index posted a decline of -0.01% for the month, with positive contributions from fixed income exposure and multi-strategy credit funds, which were only partially offset by declines in yield alternative and convertible arbitrage strategies. The HFRI RV: Multi-Strategy Index gained +0.07% on falling yields, while widening credit spreads contributed to mixed performance across convertible arbitrage managers, with the HFRI RV: Convertible Arbitrage Index declining -0.80% for the period.

The HFRI Emerging Markets Index rose by +0.71% for the month, with positive contributions from exposure to Emerging Asia, Russia and multiple Emerging Markets offsetting declines in Latin America and the Middle East. The HFRI Fund of Hedge Funds Index posted a gain of +0.65%, in line with the performance of single manager strategies.

(press release)

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1