Thu, Oct 1, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Fifth straight month of hedge fund gains fuels investor confidence

Tuesday, September 15, 2020
Opalesque Industry Update - As Wall Street experienced its best August since the 1980s, the hedge fund industry posted its fifth straight positive month returning 2.42% in August, according to the Barclay Hedge Fund Index, compiled by BarclayHedge, a division of Backstop Solutions. By comparison, the S&P 500 Total Return Index was up 7.19% in August.

For the year-to-date, the hedge fund industry added to its gains in August, returning 2.40% for 2020. The S&P Total Return Index returned 9.74% over the same period.

All but three hedge fund sectors tracked by the Barclay Hedge Fund Indices were in the black for August.

"The COVID-19 pandemic remained a very real factor for businesses, economies and societies in August, but investors continued to see significant causes for optimism," said Sol Waksman, president of BarclayHedge. "Stock markets posted record results as U.S. durable goods orders exceeded expectations, home sales surged and consumer spending continued to increase, with markets responding accordingly."

In August, the Pacific Rim Equities Index led the way among hedge fund sectors with a 4.60% return. The Emerging Markets Asian Equities Index returned 4.35%, the Emerging Markets Asia Index and Emerging Markets Global Equities Index each produced a 3.76% yield, the Healthcare & Biotechnology Index was up 3.72% and the Emerging Markets Eastern European Equities Index posted a 3.35% return.

The few sectors in the red in August included the Emerging Markets Latin American Equities Index, down 2.32%, and the Emerging Markets Latin America Index, off 1.26%, as Latin American economies and corporates continued to be particularly stressed by the COVID-19 pandemic. The third sector in negative territory for August was the Equity Market Neutral Index, off 0.72% for the month.

For the year-to-date, hedge fund sectors were split in August between those in the black and those in the red. Leading gainers for the year included the Technology Index, up 15.74%, the Volatility Trading Index, gaining 12.15%, the Emerging Markets Asian Equities Index, returning 10.04% on the year, the Healthcare & Biotechnology Index, up 9.90%, and the Fixed Income Arbitrage Index, gaining 8.52%.

Among the sectors in the red for the year were the Emerging Markets Latin American Equities Index, down 13.67%, the Emerging Markets MENA Index, losing 5.91%, the Emerging Markets Eastern European Equities Index, slipping 5.00%, the Emerging Markets Global Equities Index, off 3.63% and the Pacific Rim Equities Index, down 3.45%.

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. Investing: Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says, Pandora tops world's best-performing market as hedge funds exit, What Bill Ackman is investing in now[more]

    Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says From Business Insider: Credit Suisse on Thursday trimmed its overweight rating for tech stocks, recommending investors be more selective with their sector picks. Crowding in tech giants and the stocks&#

  2. Investing: Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan, Here's what investors with $3.4tn are buying during covid, An energy trader seeks profit from batteries in European markets, Hedge fund ARCM to sell $200m of Premier Oil debt[more]

    Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan Third Point LLC acquired new stakes in Facebook Inc. and Chinese e-commerce companies Alibaba Group Holding Ltd. and JD.com Inc. during the second quarter of 2020 as it divested positions in Sony Corp. and drugmaker

  3. PE/VC: Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise, Aberdeen's Bonaccord teams up with CAZ to buy stakes in private markets managers, The role of private equity in economic recovery from Covid-19[more]

    Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise From Institutional Investor: New research suggests private-equity-owned firms respond differently to financial distress - and that the resulting performance "cannot be replicat

  4. Opalesque TV: Meet a Swiss fund manager who hedges with a difference[more]

    B. G., Opalesque Geneva: There is a quant manager in Zurich that does things a little differently, which has helped a lot so far this year. ICON Asset Management, which was mentioned in the

  5. Franklin Templeton creates new unit with QS Investors[more]

    Laxman Pai, Opalesque Asia: Franklin Templeton will combine recently acquired QS Investors, a Legg Mason subsidiary, with Franklin Templeton Multiasset Solutions (FTMAS) business into a single consolidated unit. Effective Oct. 1, the combined business, called Franklin Templeton Investment Sol