Emerging Market Strategies Performed Best
Hedge funds returned an average of 0.06% in March and the rate of net investor inflows was again strong. Q1 2011 inflows were the largest since Q3 2009.
Below are early estimates* for March hedge fund performance and asset flows. A full report will be available later in the month.
March Highlights:
•The equal weighted HFN Hedge Fund Aggregate Index was +0.06% in March 2011 and +1.37% year-to-date (YTD). The S&P 500 Total Return Index (S&P) was +0.04% in March and +5.92% in the first three months of 2011.
•Hedge fund assets increased an estimated 0.41% in March to $2.547 trillion. Investors added a net $12.4 billion during the month for a core growth rate of 0.49%. This is a decline from February, but well above the average for 2010. HFN defines core growth as the % increase in AUM due solely to net investor inflows.
•In the first quarter 2011, investors allocated an estimated net $42.4 billion. This is the largest quarterly net inflow since investors allocated a net $53 billion in Q3 2009.
•Emerging markets strategies rebounded in March, led by funds investing in India and Brazil. Despite the strong month, funds investing in China, India and the MENA region are down an average of -1.12%, -6.76% and -4.81% in 2011. Russia focused funds are the leading EM group in 2011, +7.04% in the first quarter.
•Japan focused funds have reported an average loss of -4.80% in March. Of the 43 Japan funds reporting performance for March, 40 reported losses and 18 were down more than 5%. Of those down more than 5%, half were UCITS hedge fund structures.
•Aggregate hedge fund performance was weighed down by CTA/managed futures funds. Natural resource strategies, outside of energy related commodities, dropped an average of -1.22%. Long/short equity strategies were slightly negative during the month.
•In the first quarter 2011, energy sector funds performed best, +6.44%, followed by small cap equity funds, +6.18% and mortgage related strategies, +5.47%.
*Early estimates are based on funds reporting March returns as of April 11th, 2011. Performance has a tendency to drift lower as more funds report. Asset estimates may drift lower, but have not shown a consistent tendency to do so.
HFN’s full March report, to be released in the third week of April, will provide details on high water marks and asset flows by strategy and region.
Click here to read the full report.
Wednesday, April 13, 2011
Monday, April 11, 2011
New: the Dow Jones Credit Suisse Core Hedge Fund Index
Daily Priced Index Offers New Industry Standard for Tracking Performance of the Liquid Hedge Fund Universe
The Dow Jones Credit Suisse Core Hedge Fund Index is the first index of its kind to utilize multiple managed account platforms to track the liquid, investable hedge fund universe. Following the market events of 2008, increased attention has been focused on liquid hedge fund structures, including managed accounts, which tend to offer superior liquidity and transparency. The enhanced risk management capabilities of these flexible investment vehicles has led to a resurgence of interest in the space, and the launch of the Dow Jones Credit Suisse Core Hedge Fund Index marks a revolutionary step toward measuring the performance of this rapidly growing industry segment.
The Dow Jones Credit Suisse Core Hedge Fund Index is the first and only hedge fund index designed to reflect the performance of managed accounts and other regulated fund structures sourced from multiple best-in-class managed account platforms, creating an unparalleled view of the liquid, investable hedge fund universe. This truly innovative approach represents a significant advantage over other indexes which are limited to the funds available on single managed account platforms and is designed to reflect the broadest representation of the liquid hedge fund universe with limited platform bias.
According to Oliver Schupp, President of Credit Suisse Index Co., LLC, "The Dow Jones Credit Suisse Core Hedge Fund Index was launched in response to increasing investor demand for more transparency and liquidity in the hedge fund universe and we believe the index's unique approach provides investors with a superior tool for measuring hedge fund performance. The credit crisis of 2008 heightened hedge fund investors' awareness of their liquidity needs and as a result, investors today are actively seeking the objective, transparent insight into the performance of the hedge fund industry that the Dow Jones Credit Suisse Core Hedge Fund Index provides."
Michael A. Petronella, President, Dow Jones Indexes, added, "The Dow Jones Credit Suisse Core Hedge Fund Index clearly fills a void for investors seeking a reliable and trustworthy performance gauge of liquid, investable hedge funds. We're proud to join with Credit Suisse in providing investors with unprecedented insight into this highly sought-after asset class."
Rebalanced quarterly, the Dow Jones Credit Suisse Core Hedge Fund Index is UCITS III compliant and includes 40 component funds diversified across seven style-based sectors: event driven, long/short equity, global macro, emerging markets, managed futures, fixed-income arbitrage and convertible arbitrage. The index employs an objective, fully transparent selection process with all index constituents required to provide daily valuations and weekly, or better, liquidity to be considered for inclusion in the index. Daily values for the index are available at www.hedgeindex.com.
As the industry's premier asset-weighted hedge fund indexes, the Dow Jones Credit Suisse Hedge Fund Indexes platform consists of a range of geographical and strategy-specific hedge fund indexes that are constructed from a proprietary data-base of more than 8,000 hedge funds which seeks to provide the most accurate representation of the hedge fund universe.
Additional information about the Dow Jones Credit Suisse Core Hedge Fund Index and all of the Dow Jones Credit Suisse Hedge Fund Indexes -- including research, fund performance and constituent fund information -- can be found at www.hedgeindex.com.
The Dow Jones Credit Suisse Core Hedge Fund Index is the first index of its kind to utilize multiple managed account platforms to track the liquid, investable hedge fund universe. Following the market events of 2008, increased attention has been focused on liquid hedge fund structures, including managed accounts, which tend to offer superior liquidity and transparency. The enhanced risk management capabilities of these flexible investment vehicles has led to a resurgence of interest in the space, and the launch of the Dow Jones Credit Suisse Core Hedge Fund Index marks a revolutionary step toward measuring the performance of this rapidly growing industry segment.
The Dow Jones Credit Suisse Core Hedge Fund Index is the first and only hedge fund index designed to reflect the performance of managed accounts and other regulated fund structures sourced from multiple best-in-class managed account platforms, creating an unparalleled view of the liquid, investable hedge fund universe. This truly innovative approach represents a significant advantage over other indexes which are limited to the funds available on single managed account platforms and is designed to reflect the broadest representation of the liquid hedge fund universe with limited platform bias.
According to Oliver Schupp, President of Credit Suisse Index Co., LLC, "The Dow Jones Credit Suisse Core Hedge Fund Index was launched in response to increasing investor demand for more transparency and liquidity in the hedge fund universe and we believe the index's unique approach provides investors with a superior tool for measuring hedge fund performance. The credit crisis of 2008 heightened hedge fund investors' awareness of their liquidity needs and as a result, investors today are actively seeking the objective, transparent insight into the performance of the hedge fund industry that the Dow Jones Credit Suisse Core Hedge Fund Index provides."
Michael A. Petronella, President, Dow Jones Indexes, added, "The Dow Jones Credit Suisse Core Hedge Fund Index clearly fills a void for investors seeking a reliable and trustworthy performance gauge of liquid, investable hedge funds. We're proud to join with Credit Suisse in providing investors with unprecedented insight into this highly sought-after asset class."
Rebalanced quarterly, the Dow Jones Credit Suisse Core Hedge Fund Index is UCITS III compliant and includes 40 component funds diversified across seven style-based sectors: event driven, long/short equity, global macro, emerging markets, managed futures, fixed-income arbitrage and convertible arbitrage. The index employs an objective, fully transparent selection process with all index constituents required to provide daily valuations and weekly, or better, liquidity to be considered for inclusion in the index. Daily values for the index are available at www.hedgeindex.com.
As the industry's premier asset-weighted hedge fund indexes, the Dow Jones Credit Suisse Hedge Fund Indexes platform consists of a range of geographical and strategy-specific hedge fund indexes that are constructed from a proprietary data-base of more than 8,000 hedge funds which seeks to provide the most accurate representation of the hedge fund universe.
Additional information about the Dow Jones Credit Suisse Core Hedge Fund Index and all of the Dow Jones Credit Suisse Hedge Fund Indexes -- including research, fund performance and constituent fund information -- can be found at www.hedgeindex.com.
Thursday, April 7, 2011
"Alternative Alternatives" investment funds gained 0.99% in February,
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The Opalesque A SQUARE Index gained* 0.99% in February, outweighing January's loss of 0.19% and bringing the year-to-date performance to +0.80%. The A SQUARE Funds of Funds Index gained an estimated 1.05% in February after a negative January result of -0.61%, adding to a year-to-date gain of 0.44%. Opalesque also announced the final 2010 performance figures: The A SQUARE Index rose 10.94% last year, the A SQUARE Funds of Funds Index rose 4.40%.
Over the last 12 months, performance of the A SQUARE Index ranged between a gain of 3.12% in September 2010 and a loss of 1.97% in May 2010, with 9 positive and 3 negative months. Since global equity markets posted broad gains again in February, Alternative Alternatives funds underperformed their two benchmarks for the second time this year: Hedge funds tracked by the HFRI Fund Weighted Composite Index returned 1.32% in February (+12.46% over the last 12 months). The MSCI World Index posted another strong month with a gain of 3.33% in February (+19.48% over the last 12 months).
In terms of absolute and relative risk, both the A SQUARE Index and the A SQUARE Funds of Funds Index did better than their benchmarks over the analyzed 12-month period: Volatility (defined as annualized standard deviation) was 4.97% for the A SQUARE Index and 5.10% for the FoF Index, compared to 6.32% for the HFRI and over 19.93% for the MSCI World.
Market risk, measured by the corresponding beta values, was low for both A SQUARE indices, a result of the small volatility and low correlation of the funds listed in the A SQUARE database with both equity markets and hedge fund strategies (0.21 and 0.75 respectively for the A SQUARE Index).
Historically, the A SQUARE single manager funds delivered steady, double-digit returns from 2004 to 2010 (with the exception of the financial crisis year 2008), ranging between 10.94% in 2010 and 14.85% in 2005, and outperforming the HFRI Fund Weighted Composite Index four times. During the crisis year of 2008, the A SQUARE Index provided significant downside protection, ending the year 2008 down 5.87%, compared to a HFRI decline of around 20%.
About the Opalesque A2 Indices and database:
Opalesque A SQUARE = Alternative Alternatives is the first web publication, globally, that is dedicated exclusively to “alternative” investments. A SQUARE's weekly selection feature unique investment opportunities that bear virtually no correlation to the main stream hedge fund strategies and/or distinguish themselves by virtue of their “alternative” motive - social, behavioural, natural resources, sustainable / environment related investing. The archive containing all issues of A SQUARE published to date can be found here:
http://www.opalesque.com/index.php?act=archiveA2&formsea ...
With currently 601 Alternative Funds in 22 categories, the new A SQUARE database is the only database dedicated exclusively to "alternative alternatives" investments with fast facts and investment oriented analysis. The A SQUARE database is located here:
http://www.opalesquesolutions.com/asquare/
The A SQUARE Index and the A SQUARE FoF Index are the first indices tracking the performance of niche investment strategies only. Both indices are equally weighting the performance of all funds and FoFs listed in our database. More information on the performance and methodology of the indices can be found here:
http://www.opalesquesolutions.com/asquare/a2index.html
# # #
About Opalesque:
In 2003, with the publication of its daily Alternative Market Briefing, Opalesque successfully launched an information revolution in the hedge fund media space: "Opalesque changed the world by bringing transparency where there was opacity and by delivering an accurate professional reporting service." - Nigel Blanchard, Culross. This hybrid financial news service, which combines proprietary industry news stories and filtered third party reports, has been credited by many industry insiders with delivering precise, accurate, and vital information to a notoriously guarded audience.
Each week, Opalesque sends out over 700,000 editions of its seventeen publications to a global readership in over 170 countries. Opalesque is the only daily hedge fund publisher which is actually read by the elite managers themselves (www.opalesque.com/op_testimonials.html).
The Opalesque A SQUARE Index gained* 0.99% in February, outweighing January's loss of 0.19% and bringing the year-to-date performance to +0.80%. The A SQUARE Funds of Funds Index gained an estimated 1.05% in February after a negative January result of -0.61%, adding to a year-to-date gain of 0.44%. Opalesque also announced the final 2010 performance figures: The A SQUARE Index rose 10.94% last year, the A SQUARE Funds of Funds Index rose 4.40%.
Over the last 12 months, performance of the A SQUARE Index ranged between a gain of 3.12% in September 2010 and a loss of 1.97% in May 2010, with 9 positive and 3 negative months. Since global equity markets posted broad gains again in February, Alternative Alternatives funds underperformed their two benchmarks for the second time this year: Hedge funds tracked by the HFRI Fund Weighted Composite Index returned 1.32% in February (+12.46% over the last 12 months). The MSCI World Index posted another strong month with a gain of 3.33% in February (+19.48% over the last 12 months).
In terms of absolute and relative risk, both the A SQUARE Index and the A SQUARE Funds of Funds Index did better than their benchmarks over the analyzed 12-month period: Volatility (defined as annualized standard deviation) was 4.97% for the A SQUARE Index and 5.10% for the FoF Index, compared to 6.32% for the HFRI and over 19.93% for the MSCI World.
Market risk, measured by the corresponding beta values, was low for both A SQUARE indices, a result of the small volatility and low correlation of the funds listed in the A SQUARE database with both equity markets and hedge fund strategies (0.21 and 0.75 respectively for the A SQUARE Index).
Historically, the A SQUARE single manager funds delivered steady, double-digit returns from 2004 to 2010 (with the exception of the financial crisis year 2008), ranging between 10.94% in 2010 and 14.85% in 2005, and outperforming the HFRI Fund Weighted Composite Index four times. During the crisis year of 2008, the A SQUARE Index provided significant downside protection, ending the year 2008 down 5.87%, compared to a HFRI decline of around 20%.
About the Opalesque A2 Indices and database:
Opalesque A SQUARE = Alternative Alternatives is the first web publication, globally, that is dedicated exclusively to “alternative” investments. A SQUARE's weekly selection feature unique investment opportunities that bear virtually no correlation to the main stream hedge fund strategies and/or distinguish themselves by virtue of their “alternative” motive - social, behavioural, natural resources, sustainable / environment related investing. The archive containing all issues of A SQUARE published to date can be found here:
http://www.opalesque.com/index.php?act=archiveA2&formsea ...
With currently 601 Alternative Funds in 22 categories, the new A SQUARE database is the only database dedicated exclusively to "alternative alternatives" investments with fast facts and investment oriented analysis. The A SQUARE database is located here:
http://www.opalesquesolutions.com/asquare/
The A SQUARE Index and the A SQUARE FoF Index are the first indices tracking the performance of niche investment strategies only. Both indices are equally weighting the performance of all funds and FoFs listed in our database. More information on the performance and methodology of the indices can be found here:
http://www.opalesquesolutions.com/asquare/a2index.html
# # #
About Opalesque:
In 2003, with the publication of its daily Alternative Market Briefing, Opalesque successfully launched an information revolution in the hedge fund media space: "Opalesque changed the world by bringing transparency where there was opacity and by delivering an accurate professional reporting service." - Nigel Blanchard, Culross. This hybrid financial news service, which combines proprietary industry news stories and filtered third party reports, has been credited by many industry insiders with delivering precise, accurate, and vital information to a notoriously guarded audience.
Each week, Opalesque sends out over 700,000 editions of its seventeen publications to a global readership in over 170 countries. Opalesque is the only daily hedge fund publisher which is actually read by the elite managers themselves (www.opalesque.com/op_testimonials.html).
Hedge Fund Index advanced +0.30% in March
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The Hennessee Hedge Fund Index advanced +0.30% in March (+2.50% YTD), while the S&P 500 declined -0.10% (+5.43% YTD).
“March was challenging as markets initially sold off sharply on escalating conflicts in the Middle East and tragic events in Japan . However, markets were able to rally back during the last couple weeks to finish the month roughly unchanged,” Charles Gradante, Co-Founder of Hennessee Group, said. “Many hedge funds were “whipsawed” as they became more defensive mid-month as risks increased, which resulted in less participation during the late month rebound.”
The Dow Jones Industrial Average increased +0.76% (+6.41% YTD), and the NASDAQ Composite Index fell -0.04% (+4.83% YTD). Bonds advanced, as the Barclays Aggregate Bond Index increased +0.06% (+0.43% YTD) and the Barclays High Yield Credit Bond Index advanced +0.32% (+3.88% YTD). The full performance press release will be distributed Monday, April 11
The Hennessee Hedge Fund Index advanced +0.30% in March (+2.50% YTD), while the S&P 500 declined -0.10% (+5.43% YTD).
“March was challenging as markets initially sold off sharply on escalating conflicts in the Middle East and tragic events in Japan . However, markets were able to rally back during the last couple weeks to finish the month roughly unchanged,” Charles Gradante, Co-Founder of Hennessee Group, said. “Many hedge funds were “whipsawed” as they became more defensive mid-month as risks increased, which resulted in less participation during the late month rebound.”
The Dow Jones Industrial Average increased +0.76% (+6.41% YTD), and the NASDAQ Composite Index fell -0.04% (+4.83% YTD). Bonds advanced, as the Barclays Aggregate Bond Index increased +0.06% (+0.43% YTD) and the Barclays High Yield Credit Bond Index advanced +0.32% (+3.88% YTD). The full performance press release will be distributed Monday, April 11
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