Fri, Jun 5, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI Fund Weighted Composite Index up 0.83% in April (+3.07% YTD)

Friday, May 08, 2015
Opalesque Industry Update - Hedge funds posted gains in April as regional equity and currency markets across China, Russia, Brazil and the Middle East posted sharp gains, while volume surged on the Shanghai/Hong Kong Connect program to a daily record, driving Chinese A-shares to a gain of over 18 percent for the month. The HFRI Fund Weighted Composite Index gained +0.8 percent in April, extending 2015 gains, with contributions from exposure to Emerging Markets and Energy, as reported today by HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry.

April performance was led by the HFRI Emerging Markets Index, which advanced +7.0 percent, the best monthly return since May 2009. All EM regions posted gains, led by Russia and Emerging Asia, with the HFRI EM: Russia/Eastern Europe Index advancing +10.8 percent for the month, benefitting from the strong recovery in the Russian Rouble, as well as regional Russian equity markets. The HFRI EM: Asia ex-Japan Index climbed +10.5 percent, also the best performance since May 2009, while the HFRI China Index posted a gain of +13.0 percent, the highest return since Index inception in 2008. Hedge funds investing in other Emerging Markets also posted strong gains, as the HFRI EM: Latin America Index gained +5.9 percent, while the HFRI MENA Index advanced +3.6 percent.

Hedge fund strategy performance was led by the HFRI Equity Hedge Index, which gained +2.0 percent for the month. Equity Hedge gains were led by exposure to recovering growth equities, with the HFRI Fundamental Growth Index up +4.0 percent for the month, the best monthly performance since October 2011. Energy and Fundamental Value strategies also posted gains, with these HFRI Indices advancing +3.9 and +2.0 percent, respectively.

Fixed income-based Relative Value Arbitrage strategies also posted gains, as US & European yields rose and high yield credit tightened, with the HFRI Relative Value Arbitrage Index advancing +1.4 percent. RV gains were led by Credit Multi-Strategy, Convertible Arbitrage and Yield Alternative sub-strategies, with these gaining +2.4, +2.1 and +1.9 percent, respectively, in April.

Event Driven hedge funds also advanced for the month as deal volume accelerated with transaction announcements in Kraft/Heinz and Teva/Mylan, as well as the announcement of a transaction involving GE, Blackstone & Wells Fargo. The HFRI Event Driven Index gained +1.2 percent, with ED sub-strategy performance led by the HFRI ED: Activist Index gain of +1.9 percent and the HFRI ED: Special Situations Index gain of +1.4 percent.

Partially offsetting these, Macro hedge funds posted declines in April, paring strong 1Q15 gains, as models re-calibrated portfolio exposures as a result of Oil and Currency reversals. The HFRI Macro Index declined -1.2 percent, reducing the YTD gain to +1.9 percent. Macro sub-strategy declines were led by quantitative, trend-following CTA exposures, with the HFRI Macro: Systematic Diversified/CTA Index declining -2.2 percent for the month, paring the YTD gain for the Index to +2.4 percent.

"The drivers of April HFRI performance shifted significantly from the exposure factors which drove gains in recent months, as strategies which had been lagging, including Emerging Markets and Energy, reversed to lead performance, while trend-following CTA and Macro multi-strategy exposures declined, paring recent gains," stated Kenneth J. Heinz, President of HFR. "The surge in Chinese equities provided a tailwind to hedge fund performance in April, underscoring not only the growth in significance and sophistication of the Asian hedge fund industry, but also the speed and fluidity at which the drivers of global performance can evolve. Opportunistic hedge funds which are tactically positioned across a broad spectrum of exposures, including Emerging Markets, Energy, Oil, Currency, Shareholder Activist and interest rate sensitive strategies, are likely to drive industry performance gains and asset growth through mid-year 2015."

What do you think?

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


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. PE/VC: How Covid-19 could reshape private equity fundraising, The private equity bet that coronavirus cut short[more]

    How Covid-19 could reshape private equity fundraising From Asian Investor: The pandemic looks may have led to greater use of remote capital-raising but might it also encourage investors to establish more overseas offices? The coronavirus outbreak has inevitably hit the amount of mo

  2. Investing: Millennium hedge fund ups bet against Bank of Ireland, Value rotation was the last thing big funds thought would happen, Al Gore's firm sold Amazon and Microsoft stock. Here's what it bought.[more]

    Millennium hedge fund ups bet against Bank of Ireland From Independent: US hedge fund Millennium International Management has raised its bet against Bank of Ireland's shares. It comes as Davy says 2020 will be a write-off for banks, with losses across Irish lenders of €4bn. M

  3. PE/VC: Private equity in the Covid-19 crisis, Carlyle's Africa dealmakers leave to start their own buyout firm, UK asset managers plan shift to off-market strategies including private equity[more]

    Private equity in the Covid-19 crisis From Morning Star: Private equity investment trusts invest in unquoted companies not yet listed on the stock market. How have they fared in the sell-off? Investment trusts have been caught up in the market turmoil of recent months and private equit

  4. New Launches: Apeira Capital seeks $200m for hedge fund-like bets, PIMCO filing reveals ESG fund launch could be ahead, BEA Systems co-founder launches venture fund, Salesforce Ventures launches $125m Europe Trailblazer Fund, The D. E. Shaw group closes first onshore China investment fund, Legg Mason and ClearBridge launch non-transparent ETF, Hong Kong-based asset manager MaiCapital launches actively managed bitcoin hedge fund[more]

    Apeira Capital seeks $200m for hedge fund-like bets From Bloomberg: Natalie Hwang, the former head of Simon Property Group Inc.'s venture capital arm, has launched a new firm and is seeking $200 million for a debut fund. Hwang has been discussing the vehicle with prospective investors, ac

  5. New Launches: Hedge fund Angelo Gordon raising $1.5bn for distressed energy debt, Amundi unveils eight new funds as part of ESG ETF range push, Mezzanine Management gears up for direct lending fund[more]

    Hedge fund Angelo Gordon raising $1.5bn for distressed energy debt From Reuters: Hedge fund Angelo Gordon & Co aims to raise as much as $1.5 billion to buy the debt of distressed oil and gas companies, according to a person familiar with the matter and an investor presentation viewed by R