"Beware of Greeks bearing gifts." - Virgil
Performance
Hedge Funds Advance to Break-Even for 2010
Hedge funds as measured by the Greenwich Global Hedge Fund Index ("GGHFI") moved decidedly higher in March to new highs on the year. All Greenwich hedge fund strategy group advanced during the month. The GGHFI gained 2.95% compared to global equity returns in the S&P 500 Total Return (+6.03%), MSCI World Equity (+5.93%), and FTSE 100 (+6.07%) equity indices. Eighty-six percent of constituent funds in the GGHFI ended the month with gains. The Investable Futures Index was the largest gainer during the month, with a gain of 3.03%. Arbitrage and other Market Neutral strategies also continue to perform well, posting a gain of more than 2% for the quarter. Year-to-date, the Event-Driven and Long-Short Credit Investable Indices have been the best performers with gains of 5.61% and 3.30%, respectively.
|
Greenwich Alternative Investments Hedge Fund Index |
|||||||||
Total Return |
3 Yr Annual |
5 Yr Annual |
|||||||
Index |
Mar 10 |
YTD |
CAR |
STD |
CAR |
STD |
|||
Global Hedge Fund |
2.9% |
0.7% |
2.9% |
2.9% |
22.3% |
3.7% |
8.2% |
6.7% |
6.9% |
Global Long/Short |
3.9% |
0.9% |
3.6% |
3.6% |
27.9% |
2.5% |
10.6% |
6.7% |
9.0% |
Global Market Neutral |
2.0% |
0.6% |
3.3% |
3.3% |
20.3% |
3.6% |
6.3% |
6.0% |
5.1% |
Multi Strategy Index |
2.1% |
0.0% |
2.1% |
2.1% |
17.1% |
4.4% |
7.2% |
7.7% |
6.3% |
Benchmark |
YTD |
CAR |
STD |
CAR |
STD |
||||
Barclays Agg Bond Index |
-0.1% |
0.4% |
1.8% |
1.8% |
7.7% |
6.1% |
4.2% |
5.4% |
3.7% |
S&P 500 Index |
6.0% |
3.1% |
5.4% |
5.4% |
49.7% |
-4.2% |
20.4% |
1.9% |
16.3% |
MSCI World Index |
5.9% |
1.2% |
2.7% |
2.7% |
49.1% |
-7.5% |
22.0% |
0.8% |
17.7% |
| CAR= Cumulative Average Return, STD = Standard Deviation | Source: Greenwichai.com |
Meanwhile, Australian hedge funds rose by an estimated 3.03 per cent in March, taking the year-to-date performance to 1.72 per cent, according data released by Australian Fund Monitors in Mid-March. Equity based funds rose 4.03 per cent in March and 2.24 per cent YTD, while non equity based funds rose 0.87 per cent in March and are up 0.18 per cent YTD.
News
Van Mac Property launches excluded offer to take advantage of housing shortage
"The RBA chart says it all," according to Van Mac Group Managing Direct Scott MacDonald. "Population growth is at all time high with continued demand for skilled workers, and interest rates are on the rise showing that the economy is strong and growing.
"But housing approvals at all time low, and 20 year forecasts are showing a growing gap and shortfall in the market. The supply of equity/debt capital for property developers is currently in short supply, and we see high demand with low market risks.
"This is a great opportunity for both domestic and international investors to take advantage of this rare confluence of events, and help support Australia's continued economic growth in the process," he adds.
"As a result of the current and foreseeable mismatch between Bank lending and residential dwelling demand in the major residential centres of Australia we see an unusual but sustainable opportunity to provide funding to service this credit gap," continues Mr MacDonald.
"The project selection process will be combined with our proprietary institutional due diligence which will ensure minimum business risk. Business management risk will be further enhanced by quarantining each project in a deal specific structure (Property Equity Trust - 'PET'), providing shareholders with specific project details and progress reports."
To learn how we aim to address this market arbitrage (mismatch) opportunity contact Scott MacDonald. If you qualify as a professional investor (s761G, Corporations Act 2001) please request our 'Private Placement Memorandum'; Offer Document, via email.
Alpha Titans edge away from the competition, provide small investors with the opportunity to benefit from top drawer managers
Several months ago we introduced Alpha Titans, which provides super funds the opportunity to have a small, highly transparent exposure to top-flight funds managers without the account establishment hassle.
Alpha Titans was launched in November 2007, with the ensuing two-year period a nearly ideal environment to stress test the risk management of any investment strategy. Since launch, the fund has outperformed its peers in 23 of 29 months and done so by an average of 0.58 basis points per month, or +6.90% annualized.
Based on fallout from the financial crisis, the competitive edge of Alpha Titan managers has only grown stronger. Alpha Titan managers lie at the top of the food chain in both information flow and the ability to rapidly dynamically allocate capital to exploit the most favorable opportunities. The average manager in the portfolio now manages in excess of $16 billion. In an environment where access to liquid assets remains at a premium, those in possession of large pools of capital and deep experience across a wide range of strategies will continue to have an abundance of attractive investment opportunities.
To find out more, read Why Alpha Titans? which outlines the investment thesis behind Alpha Titans or contact Van Mac for more information
Trends
Coming to hedge funds everywhere - Public pension money
Despite the fairly rocky path trod by hedge funds since the GFC hit, pension funds in the US are seeking to increase their allocations, driven in part by the underfunding the crisis among public pensions...more>>
Singapore proposes tighter rules for hedge funds
Regulators around the world are tightening rules that will increase scrutiny of hedge funds and heighten oversight of derivatives in the wake of the global financial crisis, and now Singapore's central bank has followed suit. It has proposed tighter rules for hedge funds managing assets below S$250 million ($183 million), requiring them to have a minimum capital and two representatives residing in the city state...more>>
Hedge funds face first global risk check: IOSCO
Regulators will take their first global snapshot of risks posed by hedge funds in September as part of wider efforts to police the sector more closely. The International Organisation of Securities Commissions' members will require hedge funds operating on their turf to provide 11 sets of data at the end of September...more>>
In Profile
Greenwich ETFs make big GAINs
Since their inception in 2008 Greenwich Alternative Investments' Exchange Traded Funds (GAIN ETFs) have tracked well against other benchmarks, providing hedge fund-like performance and significantly outperformed the S&P 500 Index. The Greenwich Alternative Investments Hedge Fund Replicator Indices (GAIN Replicators) utilize publicly-listed and highly-liquid Exchange Traded Funds (ETFs) to track the performance of the Greenwich Global Hedge Fund Indices. The GAIN Replicators bring a new dimension to hedge fund indexing and investing by adding liquidity to the diversification and performance benefits of alternative asset managers.
Their unique construction allows the GAIN Replicators to obtain a diversified exposure to various hedge fund strategies via a straightforward portfolio of long and short positions in certain ETFs. The selection of the constituent ETFs and their corresponding weights in the portfolio are dynamically adjusted based on proprietary models developed by Greenwich Alternative Investments.
The flexibility of the GAIN Replicators means they may be used as the basis for numerous investable portfolios, such as GAIN ETFs, GAIN UCITS funds, or Separately Managed Accounts.
For more information on utilizing the GAIN Replicator Indices to provide simple, liquid diversification solutions for you or your firm's clients contact Van Mac.