Tuesday, March 9, 2010
U.S. Dollar Favorite Currency Investment of Hedge Fund Managers in Near Term; Few Fund Managers Expect Greek Sovereign Debt Crisis to Lead to Destruct
New York, NY – March 9, 2010 – TrimTabs Investment Research and BarclayHedge reported that the U.S. dollar is the currency on which hedge fund managers are most bullish in the near term. Six in 10 fund managers cite the greenback as their preferred currency investment over the next three months, according to the February TrimTabs/BarclayHedge Currency Survey of Hedge Fund Managers.
“The debt crisis in Greece, the creditworthiness of other countries in Europe, and the U.S. dollar rally have market participants focused on currencies,” said Vincent Deluard, Global Equity Strategist at TrimTabs. “We think currencies will dominate other investment themes throughout 2010.”
Read the entire TrimTabs Asset Flows into Hedge Funds Press Release by clicking here.
Labels: BarclayHedge press release, CTA, flows into CTAs, flows into hedge funds, hedge fund flows, hedge fund research, hedge funds
Monday, March 8, 2010
Hedge Funds Post Inflow of $7.1 Billion in January; Hedge Fund Assets Stand at $1.5 Trillion
New York, NY – March 8, 2010 – TrimTabs Investment Research and BarclayHedge reported that all hedge funds posted an estimated inflow of $7.1 billion, or 0.5% of assets, in January 2010. Total hedge fund assets stand at $1.5 trillion, up 23.6% from the April 2009 low, thanks to an unprecedented 11-month winning streak.
“January bucked the trend,” said Sol Waksman, CEO of BarclayHedge. “The first month of the year typically delivers a redemption-driven outflow. The fact that hedge funds managed to attract money is a good sign.”
Read the entire TrimTabs Asset Flows into Hedge Funds Press Release by clicking here.
Labels: BarclayHedge press release, CTA, flows into CTAs, flows into hedge funds, hedge fund flows, hedge fund research, hedge funds
Friday, March 5, 2010
Fund Launches
From the March 2010 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: CTA, hedge funds, New Fund Launches
The TrimTabs/BarclayHedge Currency Survey of Hedge Fund Managers
The Greek sovereign debt crisis and the U.S. dollar rally have drawn attention to currencies in the past month. We expect currencies to dominate other investment themes throughout 2010. Massive government spending and extreme monetary policy choices halted the 2008 crisis, but they also dramatically altered government balance sheets and monetary outlooks. We believe the market will adjust to these new realities through trial and error.
We surveyed hedge fund managers and currency traders in the BarclayHedge database about their expectations for the currency market. Specifically, we asked about their favorite currency in the short term, their opinion of the Greek debt crisis, and their view on long-term U.S. interest rates.
Our findings . . .
Accredited investors can read the entire article for free.
From the March 2010 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Tuesday, February 16, 2010
Barclay Hedge Fund Index Down 0.29% in January; Hedge Funds Start 2010 in the Red
FAIRFIELD, Iowa, February 16, 2010 – Hedge funds lost 0.29% in January according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“Equity investors expressed their disappointment with White House announcements that the administration would seek to curtail risky behavior of U.S. banks,” says Sol Waksman, founder and president of BarclayHedge.
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Tuesday, February 9, 2010
Hedge Funds Post Outflow of $3.8 Billion in December; Hedge Fund Assets Hit 12-Month High of $1.5 Trillion
New York, NY – February 9, 2010 – TrimTabs Investment Research and BarclayHedge reported that all hedge funds posted an estimated outflow of $3.8 billion in December 2009. December’s outflow is the industry’s first since July 2009. At the same time, hedge fund assets grew to a 12-month high of $1.5 trillion thanks to an unprecedented 10-month winning streak.
“December’s relatively small outflow is almost certainly seasonal, a product of quarter-end and year-end redemptions,” said Sol Waksman, CEO of BarclayHedge. “Hedge funds experienced outflows in December in each of the past five years, and we suspect inflows have already resumed.”
In addition, funds of hedge funds posted an estimated outflow of $6.3 billion in December, bringing redemptions for all of 2009 to $180.9 billion. Funds of funds returned only 10.24% in 2009, less than half of the industry’s average 23.9% gain. “Funds of hedge funds turned extremely risk-averse after the late 2008 sell-off,” said Vincent Deluard, Global Equity Strategist at TrimTabs. “Their conservative strategy allocation and large cash balances hurt their returns during this rebound.”
Read the entire TrimTabs Asset Flows into Hedge Funds Press Release by clicking here.
Labels: BarclayHedge press release, CTA, flows into CTAs, flows into hedge funds, hedge fund flows, hedge fund research, hedge funds
Lies of Capital Lines
In their paper they examine in detail the qualitative effects caused by the investors' sensitivity to mark-to-market and price of liquidity. They find that by chasing returns and prompting investment managers to deliver unsustainable performance, the investment community damages its own chances through a greedy search for yield.
Download the full article here.
From the February 2010 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge fund performance, hedge funds
Monday, February 8, 2010
Fund Launches
- 3 Degrees Credit Opportunities Fund
- Brasada Strategic Growth Fund, LP
- Brasada Value Opportunities Fund, LP
- Cirrus Capital Management, LLC
- Crystal Capital International Fund SPC
- CSHG Fix Fund
- Diversified Dynamic Solution Fund
- Faulkner Capital FX; Metals & Mining
- Montague Financial (S&P Abs Return)
- Permian Fund, L.P.
- Stella Capital Al-Aqarat Fund, LP
- Stella Capital Real Estate Opportunity
- Straight Line Opportunity, L.P.
- VOC Commodity Alpha
From the February 2010 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: CTA, hedge funds, New Fund Launches
Friday, February 5, 2010
Do Hedge Fund Investors Care About “Fat-Tails” Risk?
Many academic studies teach; and the collapse in equity prices in 2008 reminds, that hedge funds are subject to brutal sell-offs one would not expect looking solely at the mean and variance of their historical returns. Kurtosis measures the risk of a highly implausible event coming to pass more frequently than one would expect from a normally distributed variable. Nassim Taleb popularized this notion in The Black Swan, his well-timed 2007 book.
We used the BarclayHedge database to measure the kurtosis of hedge fund returns and how it impacts hedge fund flows. We were especially interested to know if kurtosis is priced in, or if non-normal returns offer arbitrage opportunities for sophisticated investors.
We believe this study supplements the existing literature for three reasons:
Its simplicity - Our goal was not to run a battery of complex econometric tests on the data, but rather 1. to see whether hedge fund investors can hedge themselves from the problem of kurtosis. . . .
Accredited investors can read the entire article for free.
From the February 2010 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Thursday, January 14, 2010
55% of Hedge Funds Recover from 2008 Losses; Barclay Hedge Fund Index Gains 24.14% in 2009
FAIRFIELD, Iowa, January 14, 2010– Hedge funds rebounded from 2008 losses with a 24.14% gain in 2009 according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“Based on our calculations, close to 55 percent of single manager hedge funds now have a profit for the time period from June 1, 2008 to December 31, 2009,” says Sol Waksman, founder and president of BarclayHedge. “Of those funds that are still in negative territory, the average loss is currently at 17 percent.”
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Hedge Fund Inflows Hit 18 Month High of $18.7 Billion in November; Hedge Fund Launches Fell to Record Low in 2009
New York, NY – January 12, 2010 – TrimTabs Investment Research and BarclayHedge reported that all hedge funds posted an estimated inflow of $18.7 billion in November, more than double the inflow of $8.2 billion in October. The inflow in November was the largest since May 2008.
“Flows into hedge funds are back to pre-crisis levels,” said Sol Waksman, CEO of BarclayHedge. “Nevertheless, the inflow of $54 billion in the latest four months reversed only a small portion of the redemptions of $402 billion from September 2008 through July 2009.”
In addition, funds of hedge funds took in $4.9 billion in November, their first significant inflow since March 2008.
Read the entire TrimTabs Asset Flows into Hedge Funds Press Release by clicking here.
Labels: BarclayHedge press release, flows into CTAs, flows into hedge funds, hedge fund flows, hedge fund research, hedge funds
Tuesday, January 12, 2010
Fund Launches
- A2M Lion Fund
- AN Commodity Fund
- APAC APEMM
- Belltower Fund
- CAM Distressed/Credit Opportunities Fund
- FCP Finalties Equities (UCITS3)
- Galloway Global Fixed Income Fund
- Global Wealth STP
- Herschel Absolute Return Fund
- KeyPoint Real Estate Opportunity Fund LP
- Lionhart Enhanced Opportunities Fund Ltd
- MAG MA2 Fund, LP.
- Merrant Select Market Neutral
- Northlight European Fundamental Credit
- Ocean Capital China Macro Fund
- Point Defiance Microcap Fund
- Quest Brazil Equity Fund
- SEAL Capital Global Strategy
- The Deuce
- Tradex Global Liquid 50 Portfolio
- YA Global Investments II Ltd
From the January 2010 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: CTA, hedge funds, New Fund Launches
Creative Destruction in the Hedge Fund Industry
Three main factors impact the size of the hedge fund industry - its returns, the flows into existing funds and the net creation (or liquidation) of hedge funds. Since we comment regularly on hedge fund flows and returns, we focused on hedge fund creations and liquidations.
We found that:
- The hedge fund industry lives in a very Darwinian world, i.e. 6.5% of hedge funds (in terms of assets) disappear every year while 6.9% are created. At this pace, it takes only 15 years to fully replace the hedge fund industry.
- The pace of hedge fund creation has slowed as the industry has matured. Fund launches represented 4.1% of hedge fund assets in 2008 and 2009, against 10.5% in 2002 and 2003.
- In terms of assets, liquidations have exceeded new fund launches in each of the past four years.
- 2009 was the worst year on record for fund launches. Fewer funds were launched and they started with far fewer assets (an average of $452 million …
Accredited investors can read the entire article for free.
From the January 2010 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Wednesday, December 16, 2009
Hedge Funds Back On Track in November; Barclay Hedge Fund Index Gains 1.48%
FAIRFIELD, Iowa, December 16, 2009– Hedge funds gained 1.48% in November according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“After a slight pullback in October, hedge funds regained their upward momentum in November,” says Sol Waksman, founder and president of BarclayHedge.
Labels: BarclayHedge press release, hedge funds
Tuesday, December 8, 2009
Fund Launches
From the December 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: CTA, hedge funds, New Fund Launches
A New Look at Building Teamwork Portfolios
In their paper, they examine portfolios using metrics that appear to have predictive power – correlations and volatility - and find that these “teamwork” portfolios exhibit less turnover, lower transaction costs and provide an intriguing approach to portfolio construction.
Download the full article here.
From the December 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge funds
Monday, December 7, 2009
Analysis of the Smattering of Hedge Funds that Posted Positive Returns in 2008 and 2009
We have observed in previous studies that there was a dramatic mean reversion in hedge fund returns over the past two years. In this study, we focus on the handful of funds that outperformed their peers in both years. What are the common characteristics of these “star performers?” Is it possible to identify them ex ante?
We found that:
- Less than 13% of all hedge funds posted positive returns in both 2008 and 2009. The bulk of hedge funds (68%) posted losses in 2008 and gains in 2009.
Accredited investors can read the entire article for free.
From the December 2009 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Wednesday, November 25, 2009
Emerging Markets Funds Rally; Fair Value or a New Bubble?
From the Fourth Quarter, 2009 issue of Barclay Managed Funds Report. The full report also includes 24 hedge fund and managed futures performance ranking tables and in-depth manager profiles. Subscribe. View Roundtables from back issues.
Oh, what a difference a year can make! This time last year the global markets were on the verge of Armageddon, and investors could not pull their capital out of any risk-based asset class fast enough, let alone one of the riskiest asset classes,
emerging markets.
The aggregate emerging markets were hit particularly hard, with equity losses of more than 50% on $50 billion of fund outflows. It would seem that investors had finally had enough of the frivolous risk taking that has all too often driven many
a market to bubbly proportions. Fast forward nine months, however, and emerging
market equities have advanced more than 60% year-to-date through September, and fund inflows have returned to a breakneck pace. It’s not overly evident where the steam for this recent rally is coming from – whether it’s the few trillion dollars of global stimulus spending, a serious case of investor amnesia, or a sense of urgency to win back the investment losses from 2008.
Perhaps the emerging markets were just simply oversold and may not be susceptible
to the lingering economic downturn and eventual hangover effects of a few trillion dollars’ worth of debt. Whatever the cause, it appears that the emerging markets are set to post spectacular returns for all of 2009, although a keen eye may be critical to determine the inflection point between fair value and a new and improved bubble. To review the opportunities and risks in emerging market investments, we have assembled a panel of experts with hands on experience in the sector. Our panel includes:
Ajay G. Jani, Gramercy LLC
Gavin Joubert, Coronation Fund Managers
Ian McCall, MSc, Argo Group Limited
The complete article will be available on the BarclayHedge.com website in February 2010. Subscribe to receive each issue of the Barclay Managed Funds Report as it comes out.
Labels: Barclay Managed Funds Report, CTA, hedge fund performance, hedge funds
Thursday, November 19, 2009
Fund Launches
- Aperio Master Multi-Trading Ltd.
- Artemis Capital Investors, L.P.
- Auriel European Eq Strategy
- Rotella TEXO
- The NEAS Power Fund
From the November 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: CTA, hedge funds, New Fund Launches
Monday, November 16, 2009
Barclay Hedge Fund Index Slips 0.20% in October; October Loss Ends 7-Month Winning Streak
FAIRFIELD, Iowa, November 16, 2009– Hedge funds registered a 0.20% loss in October according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“Prior to October’s loss, the Barclay Hedge Fund Index gained 21.96 percent during seven consecutive months of positive performance,” says Sol Waksman, founder and president of BarclayHedge.
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Tuesday, November 10, 2009
The End of Emerging Markets?
In their paper they explore how distinctions between emerging and developing markets are disappearing. Yet, there is one measure by which there is still a distinction, and for that reason, investors should focus more on emerging markets than developed markets.
Download the full article here.
From the November 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge fund research, hedge funds
Do Hedge Fund Managers have Stock-Picking Skills?
In his paper he studies novel data, from a confidential website, where a select group of fundamental-based hedge fund managers share investment ideas. Evidence suggests that the managers’ long recommendations earn economic and statically significant long-term abnormal returns.
Download the full article here.
From the November 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge fund research, hedge funds
Friday, November 6, 2009
Overview of 13F Filings for 2009 Q2
The topical study from the November 2009 issue of The Hedge Fund Flow Report. Gain insight into industry trends and hedge fund asset flows before you make your next important decision.
This week, we processed and analyzed 13F filings for the second quarter of 2009. 13F filings are filed by all large investment advisors and contain their equity positions.
We found that:
The top 100 institutional advisers overweighted Industrials in the second quarter. In addition, they rebalanced heavily towards Financials and Consumer Discretionary, which could explain the strong performance in those sectors.
The top 85 hedge funds continue to overweight Health Care stocks and underweight Consumer Staples stocks. . . .
Accredited investors can read the entire article for free.
From the November 2009 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Thursday, October 15, 2009
Hedge Funds Gain 3.25% in September;Barclay Hedge Fund Index Up 20.05% in 2009
FAIRFIELD, Iowa, October 15, 2009– Hedge funds added 3.25% in September according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is now up 20.05% in 2009.
“This month’s gain of 3.25 percent is the strongest September return since 1997, when hedge funds rose 4.05 percent,” says Sol Waksman, founder and president of BarclayHedge.
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Friday, October 9, 2009
Are We There Yet? How Many Hedge Funds Are Reaching New High Water Marks?
In March, we predicted that hedge fund revenues would drop 67% in 2009 because hedge funds were far off their high water marks. The recent rally has made our estimate too conservative. It seems that the industry has almost climbed back to its pre-Lehman levels.
In this study, we find that:
Hedge funds are now only 8.9% off their high water mark compared to a 17.2% gap in November 2008.
A robust 22.2% of hedge funds reached new high water marks in August, but more than half of the industry is still “working for free (other than the usual management fee).”
Relatively few hedge funds are at high water marks despite the industry’s record run in the past six months, because the biggest winners this year were last year’s biggest losers. . . .
Accredited investors can read the entire article for free.
From the October 2009 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Tuesday, October 6, 2009
On the Consistency of Hedge Fund Indexes Across Providers
In his paper, he defines a procedure for analyzing the consistency of hedge fund index returns among hedge fund data providers.
Download the full article here.
From the October 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge fund research, hedge funds
Tuesday, September 15, 2009
Stock Market Lifts Hedge Fund Returns; Barclay Hedge Fund Index up 2.06% in August
FAIRFIELD, Iowa, September 15, 2009– Hedge funds rose 2.06% in August according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“After recording six straight months of positive returns, the Barclay Hedge Fund Index has now gained 16.48 percent in 2009, versus a gain of 14.97% for the S&P 500 Total Return Index,” says Sol Waksman, founder and president of BarclayHedge.
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Friday, September 11, 2009
Last Year’s Biggest Losers Outperform Dramatically This Year
Hedge funds posted their best seven month performance in our records, gaining 16.3% through July 2009. On average, the hedge fund industry stands only 11% below its May 2008 peak.
Were these gains widely spread across all hedge funds, or did last year’s losers rebound more sharply than the funds which avoided the sell-off? How much of this year’s gains can be attributed to risk-taking?
In this study, we found that . . . .
Accredited investors can read the entire article for free.
From the September 2009 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Thursday, August 20, 2009
Equity L/S Funds Outperform S&P by 2:1 Margin at Midyear
From the Third Quarter, 2009 issue of Barclay Managed Funds Report. The full report also includes 24 hedge fund and managed futures performance ranking tables and in-depth manager profiles. Subscribe. View Roundtables from back issues.
During the second quarter of 2009, the global equity markets staged a dramatic rebound and recouped a portion of the losses from the previous two quarters. The S&P 500 Index’s return of nearly +16% represented its strongest quarterly return since the fourth quarter of 1998. An improved investor appetite appeared to be fueled by extremely attractive security valuations, however, the level of exuberance seemed to have overlooked the fact that all may not be completely well in the world.
Economic figures, while improving, are still being hampered by a weak housing market. Oil prices are on the rise again as tension in the Middle East continues and the Obama administration tables alternative energy initiatives. Healthcare reform has become a front burner issue, but many questions remain as to how much reform will occur and what portions of the economy may be impacted by any major change. And finally, the specter of increased regulation within the financial industry and securities markets can be expected to have a wide ranging impact on investment opportunities.
With so much uncertainty, where do we go from here? Is there enough good news to support higher equity valuations over the next several quarters, or are equities poised for another correction? Has the environment changed to the point where even the best and brightest hedge fund managers may be challenged to add value for their investors? To discuss the equity market environment and opportunities within long/short investing, we have assembled a panel of experienced and successful
long/short equity managers. Our panel includes:
Ellen Adams, CastleRock Management
Jamie Horvat, Sprott Asset Management LP
Charles Oliver, Sprott Asset Management LP
Jaffrey B. Osher, Harvest Capital Strategies
The complete article will be available on the BarclayHedge.com website in November 2009. Subscribe to receive each issue of the Barclay Managed Funds Report at it comes out.
Labels: Barclay Managed Funds Report, hedge funds
Thursday, August 13, 2009
Barclay Hedge Fund Index Up 3.11% in July; Hedge Funds Gain Five Months in a Row
FAIRFIELD, Iowa, August 13, 2009– Hedge funds rose 3.11% in July according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index now has five consecutive months of gains in 2009 resulting in an increase of 16.23% since March 1.
“During July, we continued to see improving liquidity, a tightening of credit spreads, and a decrease in risk aversion among investors,” says Sol Waksman, founder and president of BarclayHedge.
“These trends provided support for a continuation of the rallies in global equity and credit markets.”
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Tuesday, August 11, 2009
What is the Optimal Number of Managers in a Fund of Hedge Funds?
In their paper they investigate the level and the determinants of the optimal number of hedge fund managers in a fund of hedge funds, and analyze its impact on performance.
Download the full article here.
From the August 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge fund performance, hedge fund research, hedge funds
How Hedge Fund Drop-Outs Affect Measurable Industry Returns
The continued out performance of hedge funds has puzzled academics for a long time. Tenants of the efficient market’s hypothesis believe that this anomaly is due to survivorship bias, as liquidated funds get dropped out of hedge fund databases.
Fortunately, BarclayHedge keeps records of the funds that have stopped reporting to them, enabling us to estimate the bias arising from hedge fund drop-outs.
In this study, we found that . . . .
Accredited investors can read the entire article for free.
From the August 2009 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Tuesday, July 14, 2009
Barclay Hedge Fund Index Rises 0.45% in June; Hedge Funds Up 11.00% in Six Months
FAIRFIELD, Iowa, July 14, 2009– Hedge funds gained 0.45% in June according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“After four profitable months in a row, hedge funds have now gained 11.00% since the beginning of the year,” says Sol Waksman, founder and president of BarclayHedge.
“It’s the best start since 1999 when the Barclay Hedge Fund Index gained 15.94% in the first six months.”
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Thursday, July 9, 2009
Investor Irrationality and Closed-End Hedge Funds
In his paper, he finds that while investors act rationally most of the time, many acted irrationally when faced with the worsening economic conditions in the second half of 2008.
Download the full article here.
From the July 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge fund research, hedge funds
Tuesday, July 7, 2009
Hedge Fund Liquidations Slow to $19 Billion in Q1 2009
Estimating hedge fund assets has become a lot harder after last year’s market debacle. Many of the funds which reported to public hedge fund databases stopped disclosing their assets and returns because their performance was no longer marketable. In addition, an unknown number of funds have been liquidated.
To address this issue, BarclayHedge surveys all hedge funds which stopped reporting and asks them whether they were liquidated.
Reporting problems were most acute in the fourth quarter of 2008, with a drop rate of 8.4%.
In order to estimate overall hedge fund liquidations, we assumed that half of the funds that elected not to report or could not be contacted were liquidated.
In this study, we found that . . . .
Accredited investors can read the entire article for free.
From the July 2009 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Monday, June 15, 2009
Barclay Hedge Fund Index Up 5.77% in May; Hedge Funds Gain 12.47% in Three Months
FAIRFIELD, Iowa, June 15, 2009– Hedge funds gained 5.77% in May according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Barclay Hedge Fund Index is now up 10.75% in 2009.
“Equity markets in both developed and emerging countries saw share prices rally in May,” says Sol Waksman, founder and president of BarclayHedge.
“A recent Wall Street Journal article attributed the rise to trillions of dollars of bailout money finding its way into financial markets.”
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Friday, June 12, 2009
FoFs Lose 22% in 2008, Worst Year on Record Sparks Large Outflows
From the First Quarter, 2009 issue of Barclay Managed Funds Report. The full report also includes 24 hedge fund and managed futures performance ranking tables and in-depth manager profiles. Subscribe. View Roundtables from back issues.
For those who crave excitement in the form of financial market volatility, 2008 was the year for you. We witnessed a crisis of historical proportions emanating from an overheated real estate market and snowballing into a mortgage and credit calamity that triggered a global liquidity freeze, which in turn impacted almost every asset class with any sort of risk premium. Exciting enough?
Well, it seems that this was just the perfect recipe to unhinge every single Ponzi scheme that has been lying dormant for the last decade, and enough to shake the hedge fund industry to its core. For the year ended 2008, hedge funds lost 21.35% as measured by the Barclay Hedge Index, the worst annual loss in the recorded history of hedge fund performance. These losses, combined with a mass investor exodus from hedge funds resulted in a net decrease in assets under management of approximately $800 billion to $1 trillion for the year.
As we view the universe today, there exists a great dichotomy between the recent market impact on single strategy hedge funds and funds of funds. In particular, most single strategy hedge funds have reported significant liquidations and have been instituting gates to cope with liquidations in an orderly fashion. Many institutional quality funds of funds, however, report little in the way of meaningful redemptions.
How is it that funds of funds have weathered the storm? Is there another shoe left to drop in this segment of the market, or is the vast opportunity set that has been created by the market debacle enough to keep funds of funds investors on board? To address these and other critical issues presently facing fund of funds we have assembled the following panel:
Rob Christian, Financial Risk ManagementFabio Savoldelli, Optima Fund Management
Scott C. Schweighauser, Harris Alternatives, LLC
The complete article is now available on BarclayHedge.com. Subscribe to receive each issue of the Barclay Managed Funds Report at it comes out.
Labels: Barclay Managed Funds Report, Barclay Roundtable, FoF, funds of hedge funds, hedge funds
Skill, Luck and the Multi-Product Firm: Evidence from Hedge Funds
Their paper finds that both idiosyncratic performance shocks and systematic differences in skill influence diversification decisions.
Download the full article here.
From the June 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge funds
How Far are Hedge Funds from their High-Water Marks?
The average hedge fund in the BarclayHedge database gained 4.9% from January to April following a 24.2% loss in 2008. We believe the average distance from high-water mark is a good complement to hedge funds returns. The average distance from the high-water mark is especially important to predict hedge fund revenues because most hedge funds can only collect their performance fees if it is exceeded. Also, the average distance from the high-water mark is a good indication of the time it will take for hedge fund investors to get back even.
In this study, we found that:
- The hedge fund industry was 17.14% below its high-water mark in April 2009.
- Assuming hedge funds returns come back to their long-term average, it should take around 3 years for the industry to make up these losses.
- Convertible Arbitrage funds are the closest to their high-water marks, while Equity Long Only funds are still 39.9% below their performance peaks.
- 12.4% of hedge funds reached . . . .
Accredited investors can read the entire article for free.
From the June 2009 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Wednesday, May 13, 2009
Hedge Funds Rally in April; Barclay Hedge Fund Index Up 5.05%
FAIRFIELD, Iowa, May 12, 2009– Hedge funds jumped 5.05% in April according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“This is the largest one-month gain for hedge funds since February 2000, when the Barclay Hedge Fund Index soared 6.76 percent,” says Sol Waksman, founder and president of BarclayHedge.
“The resurgence of global equity markets in April has given a big lift to most hedge fund strategies.” . .
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
U.K. Hedge Fund Industry Hit Hardest by Financial Crisis
Singapore and Chinese Hedge Funds Perform Best Since 2000
With the bulk of massive hedge fund redemptions presumably behind us, we can estimate which countries, cities, and U.S. states were the relative losers and winners of the financial crisis.
Are the fears of London taking the lead over New York justified? Do returns differ significantly across countries and cities? In this report, we find:
- New York increased its lead as the hedge fund industry capital.
- “Incumbents” benefited the most as bigger hedge funds held up better than smaller funds.
- Since June 2008, redemptions have been 2.5 times greater for British funds than for New York funds. . . .
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Crowded Chickens Farm Fewer Eggs - Capacity Constraints in the Hedge Fund Industry Revisited
Their paper examines how performance is impacted by fund size and inflows.
Download the full article here.
From the May 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge fund performance, hedge fund risk analysis, hedge funds
Tuesday, April 14, 2009
We Expect Hedge Fund Revenues to Plummet to $30.4 Billion in 2009
With the hedge fund boom over, we are measuring the impact of the bust. . .
Performance related revenues drop to $21.1 billion in 2008 from $55.8 billion in 2007. Performance fees fell to a record low of 0.1% of hedge fund assets in Q3 2008.
Performance fee models must take into account "high-water mark" provisions, which require many funds to return to a previous peak before collecting a performance fee. Hence, performance fees are not a linear function of assets under management and returns. They depend on the path of prior returns and the distributions of current returns. Theoretically, performance related revenue can remain strong even in periods of bad returns. . .
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Hedge Funds Up 2.41% in March; Emerging Markets Jump 4.74%
FAIRFIELD, Iowa, April 14, 2009– According to the Barclay Hedge Fund Index compiled by BarclayHedge, hedge funds increased 2.41% in March. The Index is now up 0.82% in 2009.
“After an eight percent sell-off in early March, the S&P 500 Index bounced back to gain 17 percent from March 9 to March 31, its largest 3-week rally since 1987,” says Sol Waksman, founder and president of BarclayHedge.
Read the entire Hedge Fund Press Release by clicking here.Labels: BarclayHedge press release, hedge funds
Tuesday, March 17, 2009
Hedge Funds Down 1.42% in February; Big Gains for Convertible Arbitrage and Short Sellers
FAIRFIELD, Iowa, March 17, 2009– According to the Barclay Hedge Fund Index compiled by BarclayHedge, hedge funds dropped 1.42% in February; and the Index is down 1.56% year-to-date.
“Although equity markets in developed nations had double-digit losses in February, hedge funds performed comparatively well,” says Sol Waksman, founder and president of BarclayHedge.
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
We Estimate Hedge Fund Liquidations of $268 Billion (13.6% of Assets)
Estimates of the hedge fund industry size, which was widely assumed to be around $2.0 trillion in December 2007, varied dramatically in the last quarter of 2008. HedgeFund Intelligence estimated that hedge funds assets fell to $1.8 trillion in December 2008, Hedge Fund Research estimated assets fell to $1.4 trillion.
Reporting rate plummets in the fourth quarter. We estimate that 71.5% of the funds which stopped reporting were liquidated.
As of December 2007, 1,999 hedge funds and 1,152 funds of hedge funds reported their assets and returns to BarclayHedge. By December 2008, only 1,457 hedge funds and 840 funds of hedge funds still disclosed their data. We surveyed the funds which stopped reporting. In terms of assets, 71.5% of the funds which stopped reporting were liquidated, 13.7% elected not to report their assets to BarclayHedge and 14.8% did not return our calls . . .
Labels: CTA, Hedge Fund Flow Topical Study, hedge funds
Thursday, February 19, 2009
Hedge Funds Slip Again in January; Barclay Hedge Fund Index Down 0.26%
FAIRFIELD, Iowa, February 12, 2009– Hedge funds lost a record 21.53% in 2008, and began 2009 in the red, sliding 0.26% in January according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“Global equity markets lost ground in January and volatility remained high,” says Sol Waksman, founder and president of BarclayHedge. . .
Read the entire Hedge Fund Press Release by clicking here.
Labels: BarclayHedge press release, hedge funds
Market Risk of Equity Long-Short and Market-Neutral Hedge Funds
How much risk did hedge fund investors expose themselves to when they bought so called “market neutral" funds? Has the market risk of Equity Long-Short and Equity Market Neutral strategies increased with the sell-off? Did some Equity Long-Short funds anticipate the sell-off and reduce their market exposure? If so, did they achieve superior returns and gather assets?
Market risk of Equity Long-Short and Equity Market Neutral funds increased significantly over past two years.
We studied the returns and flows of 597 Equity Long-Short funds and 143 Equity Market Neutral funds from 2000 to 2005 and 2006 to 2008. Our findings . .
Labels: Hedge Fund Flow Topical Study, hedge fund risk, hedge funds
Tuesday, February 3, 2009
BarclayHedge and SwissAnalytics Team Up to Offer Hedge Fund Due Diligence
BarclayHedge and SwissAnalytics join forces, providing hedge fund investors a one-stop-shop for full-scale hedge fund due diligence.
Investors receive a one-time 10% discount on their first completed due diligence report if ordered over BarclayHedge’s website.
Labels: BarclayHedge press release, hedge fund research, hedge fund risk, hedge funds
Thursday, January 22, 2009
70% of Hedge Funds Lost Money in 2008; Average Fund Plunges 21.44% in 12 Months
FAIRFIELD, Iowa, January 21, 2009– Hedge funds lost a record 21.44% in 2008 according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“2008 hedge fund losses were widespread, with 70 percent of the funds that report to us ending the year in the red,” says Sol Waksman, founder and president of BarclayHedge.”
“Managers of funds of hedge funds turned in an even poorer performance, with 85 percent finishing in the minus column, losing an average of 21.69 percent.”
Hedge funds began the year holding their own, with the Barclay Hedge Fund Index down just 0.79% through May. But the average fund lost 21.21% from June through November, including a two-month 14.81% decline in September and October when the S&P 500 Index fell 24.21%.
Only one hedge fund strategy was profitable in 2008, and it thrived. The Barclay Equity Short Bias Index turned in a record gain of 41.09% in 12 months, and jumped 20.83% during the September and October stock market plunge.
“With the global economy in a recession and equity markets in a tailspin, being short equities in 2008 was one of the more profitable strategies, second only to being short mortgage backed securities,” says Waksman.
“This was a fairly rare event however, as the overwhelming majority of investors in these sectors are historically net long.”
Hedge fund managers did end the year on an up-tick, as the Barclay Hedge Fund Index gained 0.52% in December, its first monthly gain since May 2008.
“Equity markets recovered as investors began to entertain the notion that the worst may be over for the financial sector,” says Waksman.
Overall, 14 of Barclay’s 18 hedge fund indices regained some ground in December. The Barclay Healthcare & Biotechnology Index jumped 3.31%, Convertible Arbitrage was up 2.86%, Merger Arbitrage gained 1.73%, Pacific Rim Equities was up 1.72%, and Global Macro rose 1.52%.
Click here to view five years of Barclay Hedge Fund Index data, or download 11 years of monthly data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For quotes, commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com.
BarclayHedge (formerly The Barclay Group) was founded in 1985 and actively tracks more than 6,600 hedge funds, funds of hedge funds, and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.
Institutional investors, brokerage firms and private banks worldwide utilize BarclayHedge data as performance benchmarks for the hedge fund and managed futures industries.
Labels: BarclayHedge press release, hedge funds
Monday, January 12, 2009
Have Hedge Fund Investors Become More Sensitive to Management Fees?
With trading losses and redemptions shriveling the assets managed by hedge funds, we decided to take a closer look at hedge fund fees. Is the current crisis helping lower-fee funds? How sensitive are hedge fund returns to management fees?
Funds with fees between 1% and 2% gain market share at the expense of very low fee funds over the past eight years. There is no evidence of a shrinkage of higher fee funds.
Two trends emerged over the past eight years . .
Labels: CTA, Hedge Fund Flow Topical Study, hedge fund research, hedge funds
Friday, January 9, 2009
Recovering Delisting Returns of Hedge Fund
Their paper examines the issue of hedge fund performance estimation when a fund has stopped reporting returns to a commercial database and whether or not a return should be attributed to funds for the period they stop reporting.
Download the full article here
From the January 2009 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, currency funds, funds of hedge funds, hedge fund performance, hedge fund research, hedge fund risk, hedge funds
Monday, December 15, 2008
Barclay Hedge Fund Index Slides 2.34% in November; Hedge Funds Down a Record 20.63% in Past Six Months
“The past six months of losses have been the worst on record for the hedge fund industry,” says Sol Waksman, founder and president of BarclayHedge.
“Prior to 2008, the longest string of consecutive losing months was three. Hedge funds lost 4.25 percent from September through November of 2000, and then 3.30 percent from July through September of 2001.”
any hedge fund strategies experienced significant losses in November. Barclay’s Equity Long Bias Index dropped 4.81%, Healthcare & Biotechnology fell 4.50%, the Emerging Markets Index was down 4.22%, and Convertible Arbitrage lost 3.69%.
merging Markets has been the worst performing strategy in 2008, losing 39.34% year-to-date. Equity Long Bias is down 28.81%, and Convertible Arbitrage has lost 28.02%.
“Early in 2008, there was a great deal of discussion about how emerging markets had ‘decoupled’ from developed markets,” says Waksman.
"The current economic environment has clearly demonstrated that when consumption decreases in developed nations, exporting nations also feel the pain.”
Four of Barclay’s 16 hedge fund indices provided positive returns in November. The Barclay Equity Short Bias Index gained 3.51%, and is up 43.76% in 2008.
Barclay’s Global Macro Index rose 1.47% in November, Pacific Rim Equities gained 0.23%, and Equity Market Neutral was up 0.13%.
Equity Market Neutral is now down just 0.98% for the year, and Global Macro has a loss of 1.32%.
Through November, the Barclay Hedge Fund Index has fallen 21.27% in 2008, compared to a loss of 37.66% in the S&P 500.
The Barclay Fund of Funds Index was down 1.64% in November, and has lost 20.04% year to date.
Click here to view five years of Barclay Hedge Fund Index data, or download 11 years of monthly data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For quotes, commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com.
BarclayHedge (formerly The Barclay Group) was founded in 1985 and actively tracks more than 6,600 hedge funds, funds of hedge funds, and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.
Institutional investors, brokerage firms and private banks worldwide utilize BarclayHedge data as performance benchmarks for the hedge fund and managed futures industries.
Labels: BarclayHedge press release, hedge funds
Thursday, December 11, 2008
Barclay Roundtable: Bailouts and Privatizations of US Financial Firms Shift Landscape
From the Fourth Quarter, 2008 issue of Barclay Managed Funds Report. The full report also includes 24 hedge fund and managed futures performance ranking tables and in-depth manager profiles. Subscribe. View Roundtables from back issues.
Unprecedented – a word not lost on the investment world recently to describe the global capital turmoil as we have entered a new era of change, fear, illiquidity, selling, and volatility that has not been seen in decades. It may not be easy to exactly pinpoint where it all started, but it’s safe to say that the heart of the problem was, and remains, within the financial sector. Inflated real estate values, a flood of new mortgages, overextended borrowers, highly levered securitizations, and tenuous bank balance sheets. All of the above seemed harmless, and routine, as long as the investment community continued to feed the liquidity machine. But once the music stopped, it didn’t take long for things to unravel and spark a severe chain of events: mortgage delinquencies, defaults, margin calls, bank insolvencies, frozen lending, widespread global market sell offs, and government interventions. Where does it all end? As of the writing of this article, the events have only begun to unfold, and the light at the end of the tunnel remains hazy.
From chaos and irrationality, however, comes great opportunity. Many a hedge fund manager has been uttering this sentiment for the last several weeks. No greater potential, for that matter, may be more prevalent than within the financial sector from whence the trouble started. Battered banks, high yielding REITs, severely discounted mortgage pools, stressed asset management organizations, and more. There is undoubtedly a great deal of profit to be made, but not without sidestepping some landmines.
In order to better understand the current environment and opportunity set within the financial sector, we have assembled a panel of experts with experience trading equities in this troubled area. Our panelists are:
Len Riddell, Martin Currie Investment Management, Ltd.
Nick Watkins, Texas Capital Limited.
Bo Thiara, Peninsula, LP.
The complete article will be available on the BarclayHedge.com website in January. Subscribe to receive each issue of the Barclay Managed Funds Report at it comes out.
Labels: Barclay Managed Funds Report, Barclay Roundtable, hedge funds, inflation, interest rates
Funds with Shortest Redemptions Periods Post the Highest Outflows
Many market strategists blamed October’s late day sell-offs on hedge fund eleveraging. Though hedge funds sold equities to meet redemptions requests, those redemptions totaled $87 billion between September and October, against $128 billion from equity mutual funds. How do we reconcile these relatively low redemptions with unprecedented market volatility?
Due to long redemption terms, only a fraction of hedge funds returned cash to investors who redeemed in September and October.
We have seen only the tip of the iceberg in redemptions . .
Labels: Hedge Fund Flow Topical Study, hedge funds
The Impact of Hedge Fund Family Membership on Performance and Market Share
The paper investigates why hedge funds from small fund families outperform those from large fund families.
Download the full article here
From the December 2008 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article, hedge fund performance, hedge funds
Monday, November 17, 2008
How Did Best-Performing Funds Weather Burst of Commodities Bubble?
A popular explanation for the surge in commodities prices in the first half of the year was that hedge funds had used commodities as a haven from the falling dollar and plummeting equities. Similarly, the drop of commodities prices after July 14 is considered to be a major cause of the recent poor performance of hedge funds. Indeed, positive hedge fund industry returns from January to July reversed into a 22.9% loss over the past four months.
We tested this hypothesis by looking for a breakdown in individual funds’ returns patterns. If hedge funds stayed in commodities too long . .
Labels: Hedge Fund Flow Topical Study, hedge funds
Wednesday, November 12, 2008
Barclay Hedge Fund Index Falls 8.04% in October; Hedge Funds Down 14.44% in Two Months
“The ‘Great Deleveraging’ continued in October,” says Sol Waksman, founder and president of BarclayHedge.
“Investors as well as hedge funds and banks continued selling in order to reduce risk exposure in their portfolios and raise cash.”
“The result has been a significant year-to-date drop in equity prices, with US markets down 30 percent, other developed markets falling 40 percent, and emerging markets losing as much as 50 percent of their value.”
The Barclay Emerging Markets Index was down 15.83% in October, and has lost 25.11% in just two months.
“It’s estimated that US investors hold some 5 trillion USD in foreign equities,” says Waksman. “Those holdings are now being liquidated.”
Convertible Arbitrage dropped 12.22%, and has lost 20.45% in September and October.
“The short sale ban created an impossible situation for convertible arbitrage funds,” says Waksman. “Selling stocks short is a key factor in the viability of the strategy.”
The only successful strategy in 2008 has been selling the equity market short. The Barclay Equity Short Bias Index had another strong month, gaining 17.21% in October.
“While Equity Long Bias funds have lost 25 percent of their value in 2008, Equity Short Bias funds have gained 43 percent,” says Waksman.
“The key factor in 2008 has been which side of the market you trade. It’s been tough for traders on the long side, whereas short traders caught a big wave.”
Year-to-date, the Barclay Hedge Fund Index has lost 19.30%, compared to a loss of 32.84% in the S&P 500.
The Barclay Fund of Funds Index lost 5.21% in October, and is down 17.33% in 2008.
Click here to view five years of Barclay Hedge Fund Index data, or download 11 years of monthly data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For quotes, commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com.
BarclayHedge (formerly The Barclay Group) was founded in 1985 and actively tracks 6,700 hedge funds, funds of hedge funds, and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.
Institutional investors, brokerage firms and private banks worldwide utilize BarclayHedge data as performance benchmarks for the hedge fund and managed futures industries.
Labels: BarclayHedge press release, hedge funds
Tuesday, October 21, 2008
6,700 BarclayHedge Fund Profiles at No Cost
Labels: CTA, FoF, free, funds of hedge funds, hedge fund performance, hedge fund research, hedge funds
Thursday, October 16, 2008
How Does This Sell-Off Compare to the 2000-2002 Bear Market?
As the S&P 500 plunged deep into bear market territory in September, we compared hedge funds flow and performance during these past twelve months to that of the 2000-2002 bear market.
- What are the similarities and differences between the two episodes?
- What strategies are better equipped to cope with a bear market?
- Are memories of the 2000-2002 bear market guiding investors’ behavior?
Labels: Hedge Fund Flow Topical Study, hedge funds
Wednesday, October 8, 2008
Barclay Hedge Funds Index Falls 5.94% in September; Worst Loss Since August 1998
“This is the worst one-month decline since August 1998, when hedge funds fell 7.81%,” says Sol Waksman, founder and president of BarclayHedge.
“Ten years ago, Russia defaulted on its bonds, LTCM had to be bailed out, hedge funds were forced to delever by their prime brokers, emerging markets were in a tailspin, and the market for mortgage-backed securities had seized up. As Yogi Berra reportedly once said, ‘It’s like déjà vu all over again.’”
Barclay’s Distressed Securities Index dropped 10.37% in September, Emerging Markets fell 10.28%, Convertible Arbitrage was down 8.97%, Equity Long Bias lost 8.29%, and the Multi-Strategy Index was down 8.16%.
“All of the MSCI Developed Market and Emerging Market country indices were down in September,” says Waksman. “As investors continue to shy away from risk, equity markets decline and credit spreads widen. Both of these factors are negative for hedge funds.”
In contrast to declines in most hedge fund strategies, the Barclay Equity Short Bias Index jumped 7.94% in September. Equity Short Bias has gained 23.42% in 2008.
“Obviously, when equity markets are in trouble, going short can provide significant gains that can help offset other losses in a portfolio,” says Waksman.
Year to date, the Barclay Hedge Fund Index has lost 11.33 percent, compared to a drop of 19.29 percent in the S&P 500.
The Barclay Fund of Funds Index lost 5.12% in September, and is down 11.42% for the year.
Click here to view five years of Barclay Hedge Fund Index data, or download 11 years of monthly data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For quotes, commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com.
BarclayHedge (formerly The Barclay Group) was founded in 1985 and actively tracks 6,800 hedge funds, funds of hedge funds, and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.
Institutional investors, brokerage firms and private banks worldwide utilize BarclayHedge data as performance benchmarks for the hedge fund and managed futures industries.
Labels: BarclayHedge press release, hedge funds
Wednesday, September 17, 2008
Hedge Funds Slide in August; Barclay Hedge Fund Index Down 1.07%
"August was a difficult month for global equity markets," says Sol Waksman, founder and president of BarclayHedge.
"All but two of the MSCI Developed Markets Country indices and three of the Emerging Markets Country indices reported losses for the month."
Overall, 12 of Barclay’s 18 hedge fund indices declined in August. The Emerging Markets Index dropped 4.51%, and has lost 16.22% in the first eight months of 2008.
Equity Market Neutral fell 2.07%, Equity Short Bias lost 1.63%, Pacific Rim Equities slid 1.22%, and the Event Driven Index was down 1.24%.
"Taken as a group, hedge funds typically have a positive correlation with equity prices and a negative correlation with credit spreads," says Waksman.
"Whenever equity prices decline and credit spreads increase at the same time, it becomes more likely that hedge fund strategies will lose money."
On the positive side, Barclay’s Healthcare and Biotechnology Index gained 0.95% in August, Technology was up 1.05%, Merger Arbitrage gained 0.66%, and European Equities rose 0.62%.
The strongest hedge fund sector year to date is Equity Short Bias, which has gained 15.05% in eight months.
The Barclay Fund of Funds Index was down 1.44% in August.
Click here to view five years of Barclay Hedge Fund Index data, or download 11 years of monthly data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For more commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com.
BarclayHedge (formerly The Barclay Group) was founded in 1985 and actively tracks more than 6,800 hedge funds, funds of hedge funds, and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.
Institutional investors, brokerage firms and private banks worldwide utilize Barclay’s data as performance benchmarks for the hedge fund and managed futures industries.
Labels: BarclayHedge press release, hedge funds
Friday, September 12, 2008
Is the Hedge Fund Industry Threatened by the Resurgent Dollar?
The dollar has surged recently, and the hedge fund industry had record losses in July 2008. This study investigates the connection between dollar returns and hedge fund returns. It measures the returns of the dollar index, and correlates them to the returns of the 5,650 dollar-denominated funds in Barclay’s Global Database.
The study shows that, since the beginning of 2000, hedge funds have had a net short position on the dollar. However, the two-year correlation coefficient in July was only -6.6%.
CTAs and Macro funds are most sensitive to dollar returns. Speculative traders turned long on the dollar in June...
Accredited investors can read the entire article for free.
From the September 2008 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.Labels: Hedge Fund Flow Topical Study, hedge funds
Copyright © 2009 by Barclay Hedge
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