Fri, Dec 13, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

The Hennessee Hedge Fund Index gained +0.80% in October (+7.60% YTD)

Thursday, November 28, 2019
Opalesque Industry Update - Developed market stocks increased 2.5% in October amid mixed economic data, positive global trade developments, and continued delays on Brexit.

U.S. equities climbed 2.2% to new highs following better-than-expected U.S. earnings and a strong October employment report.

The Fed announced a widely expected third rate cut given the mixed economic data, but also indicated a pause on further cuts. European equities increased 0.9% as the U.S. imposed new tariffs on EU goods and the ECB left rates unchanged.

Japanese equities rallied 5.4% in conjunction with global stock markets, while the BOJ announced rates will stay at current or lower levels as long as needed.

The improvement in U.S.-China trade sentiment also broadly supported emerging market equities,7 which rose 4.2% over the month despite idiosyncratic political unrest.

In Brazil, stocks rose 2.4% as the Brazilian real reform. In China, despite weak economic data, local rallied, boosted by optimism over pension equities climbed 0.8%.

The better performing sectors were Healthcare (+5.22%), Information Technology (+4.94%) and Telecommunication Services (+3.29%). While underperforming sectors were Energy (-0.34%), Utilities (-0.98%) and Consumer Staples (-0.40%).

For the month, global equities showed a rising trend across different regions. The MSCI ACWI Index increased +2.64% (+17.28% YTD) and the MSCI EAFE Index increased +3.50% (+13.80% YTD). The MSCI Emerging Market Index increased +4.09% for the month (+7.89% YTD), while hedge fund managers did not outperform the index.

The Barclays Aggregate Bond Index increased +0.30% for the month (+8.86% YTD) as interest rates decreased for the month. The Merrill Lynch High Yield Master II Index increased 3.23% for the month, and high yield spreads increased 13 basis points to end the month 415 basis points over treasuries.

Fixed income managers were positive for the month with the 10-Year U.S. Treasury ending the month at +1.69%, up 1 basis point from +1.68% in the previous month. WTI oil decreased by -0.13% in October while natural gas increased by +15.19%.

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. 50 South Capital & Preqin highlight emerging manager outperformance in a new report[more]

    Bailey McCann, Opalesque New York for New Managers: New data from Preqin and 50 South Capital, the investment arm of Northern Trust, shows that emerging managers are outperforming established managers by almost 4% a

  2. An academic wrecking ball aims at hedge funds[more]

    From Bloomberg: Quant investing, and indeed much of the hedge fund industry, is built on the power and freedom that come with the ability to sell short. When you short a security (borrow and then sell it, meaning you make money if the price falls and you then re-buy it), you can profit when markets

  3. PE/VC: Private equity buys $101bn of European businesses, 30 under 30 venture capital 2020: Meet the young investors backing tech's next big thing[more]

    Private equity buys $101bn of European businesses From Bloomberg: European equities' cheap valuations have turned the region into a honeypot for private-equity and arbitrage funds looking to reap double-digit returns. With the buyout firms enjoying a massive amount of dry powder, especial

  4. PE/VC: The truth about private equity fund size, US VC investment in female founders hits all-time high[more]

    The truth about private equity fund size From Institutional Investor: As the end of the year approaches, institutional investors in private markets are wrapping up work on the last few funds we need to invest in to hit our targeted annual commitment levels. You see, private equity

  5. Crypto: Almost 70 crypto hedge funds have closed this year as institutional investors shy away, Central bank talk of launching cryptocurrencies is all bluff, Thailand and Hong Kong in crypto collaboration with cross border token project, Crypto loans see solid growth, platforms attract community interest, A Bitcoiner in the Senate? Is Bakkt CEO in US govt. good or bad for crypto?, Bank of France to test digital currency in 2020[more]

    Almost 70 crypto hedge funds have closed this year as institutional investors shy away From The Block Crypto: Nearly 70 crypto-focused hedge funds that largely cater to institutional investors, such as pension funds and family offices, have closed this year. The number of new fund