'Inside of every problem lies an opportunity.' - Robert Kiyosaki
Performance
Hedge funds rise to 2009 highs
Hedge funds as measured by the Greenwich Global Hedge Fund Index ("GGHFI") improved during the month of August to their highest levels of the year. The GGHFI returned +1.54% while the Greenwich Composite Investable Index ("GI2") gained +1.13% during the month, compared with global equity returns in the S&P 500 Total Return +3.61%, MSCI World Equity +3.91%, and FTSE 100 +6.52% equity indices. Year-to-date, the GGHFI and the GI2 have returned +13.72% and +1.60%, respectively, while the S&P 500 Total Return, MSCI World Equity, and FTSE 100 Indices have returned +14.96%, +17.97%, and +10.71%, correspondingly. Seventy-three percent of constituent funds in the GGHFI ended the month with gains.
|
Greenwich Alternative Investments Index |
|||||||||
Total Return |
3 Yr Annual |
5 Yr Annual |
|||||||
Index |
Aug 09 |
YTD |
CAR |
STD |
CAR |
STD |
|||
| Global Hedge Fund | 1.5% |
2.5% |
13.7% |
4.4% |
-0.2% |
3.8% |
8.0% |
6.6% |
6.9% |
| Global Long/Short | 1.9% |
3.2% |
16.3% |
5.6% |
-2.9% |
2.3% |
10.3% |
6.5% |
8.9% |
| Global Market Neutral | 1.8% |
2.3% |
12.6% |
5.3% |
-0.3% |
3.5% |
6.2% |
5.4% |
5.1% |
| Multi-Strategy Index | 2.1% |
2.6% |
13.8% |
5.1% |
1.8% |
6.4% |
7.5% |
7.8% |
6.3% |
Benchmark |
YTD |
CAR |
STD |
CAR |
STD |
||||
| Lehman Agg. Bond Index | 1.0% |
1.6% |
4.6% |
3.3% |
8.0% |
6.4% |
4.0% |
5.0% |
3.6% |
| S&P 500 Index | 3.6% |
7.6% |
15.0% |
11.7% |
-18.3% |
-5.8% |
19.6% |
0.5% |
15.9% |
| MSCI World Index | 3.9% |
8.4% |
18.0% |
11.9% |
-19.3% |
-7.2% |
21.5% |
1.1% |
17.6% |
| CAR= Cumulative Average Return, STD = Standard Deviation | Source: Greenwichai.com |
Locally, according to Australian Fund Monitors, its equity based absolute return index looks set to better its previous high water mark, with the index now positive over a 12 month basis, against the ASX200 which is still down over 12% since 1st September 2008. AFM says that once again August results from some high conviction managers, particularly those who suffered during the GFC, were particularly pleasing with some returning over 10% for the month.
Markets
Sentiment (based on macro manager survey)
Macro Managers grew more bearish on U.S. Equities for September after briefly
touching similar levels in July. For the month, 66% of managers reported a bearish sentiment versus 50% in August; 13% of managers reported a bullish outlook for August, down 27%. Macro Managers were also evenly divided on their outlook for the U.S. Dollar. For September, 50% reported a bullish sentiment, and 50% maintained a bearish view. With respect to 10-year U.S. Treasury prices, Macro Managers were more bearish on their outlook for September, albeit modestly. For the month, 50% of managers reported a bullish outlook, 13% of managers reported a neutral outlook, and 38% reported a bearish outlook.
News
Recession winners: historians and hedge funds
That's it, then. The global recession is over. At least that's what Federal Reserve Chairman Ben Bernanke says. So who are the winners and losers from the recession? Here are five places to start: Historians have triumphed over economists; hedge funds over bankers; Germany over Britain; the right over the left; and the frugal over the spendthrift....more>>
New opportunities for savvy investors, says Van Mac Group MD
In the wake of the past year's market turmoil, institutional investors are examining every aspect of their fund-of-hedge-funds portfolios and the managers in charge of them, with attention focusing on the quality of operational due diligence and transparency; the need for better portfolio construction and risk management, and a related move back to more concentrated portfolios of underlying hedge funds.
"Van Mac Group has a reputation of being pro-active in all of these areas, but given the turmoil among many fund of funds and structured product providers recently we want to re -state our specific investment offerings and capabilities," says Managing Director Scott MacDonald.
"VanMac Group is able to provide access to innovative alternative product ideas and structured products," he says, adding that current offerings include the following global solutions:
1) Greenwich research resources and new index tracking funds offering liquidity, transparency and clarity - these track the hedge fund universe. Find out more here and here.
2) VanMac Alpha Titans global fund - this captures the alpha of top 15 global hedge fund managers (each averages approximately USD$13bn FUM) in one easy to access account. Find out more here.
3) VanMac Fusion Capital ETF provides highly liquid exchange traded funds in a portfolio of long/short and alpha funds (one of which is up 77% YTD), a small group with five years audited track record. Find out more here.
"Next month we will also be introducing a structured hedge fund index solution," continues Mr MacDonald. "This innovative product will provide hedge fund beta to institutional investors at potentially zero fee.
"We are also keen to offer wholesale unit trust structures in Australia & NZ where appropriate and welcome enquiries from distribution partners; platform providers; private banks and dealer groups wishing to offer clients innovative diversified, liquid, alternative solutions. Naturally where a distribution agreement is under discussion we will consider fee and market exclusivity issues on a commercial and reasonable basis.
To discuss your needs about investing in any of these funds or just more detailed information about what is appropriate for your group please contact Mr MacDonald on 0414 227 104 during business hours, or by clicking here.
Trends
Market integrity and transparency new hedge fund bywords
U.S. hedge funds will likely have to provide "pretty detailed reporting" to regulators in the future and some public disclosure of their activities, the chairman of the U.S. Securities and Exchange Commission said recently, adding that the SEC culture is also changing from one focusing on the competitiveness of firms to one that emphasizes investor protection and market integrity....more>>
EU lawmaker says hedge fund rules may be beefed up
Meanwhile, across the ditch a draft European Union law to regulate the managers of hedge funds and other alternative investment funds may be strengthened despite fierce opposition from Britain and industry, a senior EU lawmaker has said...more>>
Effective green investments in emerging markets
In recent years, capital formation and investment in cleantech industries have been growing by leaps and bounds. With venture capital and private equity firms paying closer attention to the burgeoning cleantech sector, this market is seen as the next frontier for investment opportunities...more>>
Research
How do hedge fund clones manage the real world?
Hedge fund clones are putting pressure on the real hedge fund industry and the fees it charges. But a recent paper suggests that while hedge fund clones are broadly succeeding in replicating the investment returns of real hedge funds, some have exhibited too much correlation with equity markets and have raised fears among investors about the increasing complexity of replication models. Read the report here.