"Every moment of one's existence one is growing into more or retreating into less."
- Norman Mailer
Performance
Hedge funds as measured by the Greenwich Global Hedge Fund Index ("GGHFI") cut net exposures and limited the losses experienced by markets in June. The GGHFI shed 0.84% compared to global equity returns in the S&P 500 Total Return -5.23%, MSCI World Equity -3.56%, and FTSE 100 -5.23% equity indices. Forty-two percent of constituent funds in the GGHFI ended the month with gains.
|
Greenwich Alternative Investments Hedge Fund Index |
|||||||||
Total Return |
3 Yr Annual |
5 Yr Annual |
|||||||
Index |
Jun 10 |
YTD |
CAR |
STD |
CAR |
STD |
|||
Global Hedge Fund |
-0.8% |
-2.7% |
0.1% |
-2.4% |
9.4% |
1.2% |
8.3% |
6.0% |
7.0% |
Global Long/Short |
-1.6% |
-4.5% |
-1.7% |
-4.8% |
9.6% |
-1.0% |
10.8% |
5.3% |
9.2% |
Global Market Neutral |
-0.3% |
-1.5% |
2.3% |
-0.7% |
11.7% |
2.3% |
6.3% |
5.9% |
5.1% |
Multi Strategy Index |
-0.8% |
-2.0% |
0.1% |
-1.9% |
8.1% |
1.9% |
7.1% |
7.3% |
6.3% |
Benchmark |
YTD |
CAR |
STD |
CAR |
STD |
||||
Barclays Agg Bond Index |
1.6% |
0.8% |
5.3% |
3.5% |
9.5% |
7.6% |
4.1% |
5.5% |
3.7% |
S&P 500 Index |
-5.2% |
-8.0% |
-6.7% |
-11.4% |
14.4% |
-9.8% |
20.7% |
-0.8% |
16.8% |
MSCI World Index |
-3.6% |
-9.9% |
-13.3% |
8.0% |
22.4% |
18.3% |
|||
| CAR= Cumulative Average Return, STD = Standard Deviation | Source: Greenwichai.com |
Locally, Market Neutral managers led the way in June, according to Australian Fund Monitors. Against a backdrop of the ASX200’s June fall of -2.89%, and Equity Based funds in general, which fell -0.57%, Market Neutral managers were up +1.74% in June, followed by Event Driven at +0.52%. With 44% of single funds reporting their results, 41% reported positive returns, although 85% outperformed the ASX.
News
Bye for now
Due to the proliferation of Hedge Fund related newsletters serving the sector, this will be the last issue of State of Play for now. The Van Mac Group will continue to provide consulting services to INSTOs interested in benefiting from absolute returns, but will be refocusing on the property sector as a result of investor sentiment shift (see below for more information).
Van Mac Property Investment Offer Closes October 8th, 2010
The current market in Australia for credit and equity is experiencing illiquidity and financial distress. This in turn offers investors significant investment opportunities in Australian residential real estate development.
The current mismatch in real estate finance and credit markets is presenting compelling investment opportunities. Traditional second-tier real estate lenders exited the market in late 2008 and major property developers face substantial liquidity needs.
VanMac Property has opportunities for investors for real estate debt, offering attractive yields of 15 % pa, minimum, with manageable credit risk.
"We focus on fundamental valuation and market analysis," says Van Mac Group Managing Director Scott MacDonald. "Our investment strategies are based on institutional-approach to risk assessment, prudent use of leverage and a clear value-based investing framework. "
VanMac Property will focus on two primary areas of investment:
Mezzanine Debt
Mezzanine debt tranches that yield attractive risk-adjusted returns of 15% pa or above.
Preferred Equity
Investments in preferred equity investments associated with the acquisition and development of Australian residential real estate opportunities on a project by project basis.
We are preparing offer document for UK market for GBP £80m but would welcome a private investor with more than USD$150m to invest.
To find out more, contact Scott MacDonald by e-mail or by telephone on +61 414227104.