Opalesque Solutions

Emerging manager hedge funds and CTAs gained 0.72% in April (+3.18% YTD)

May 21, 2013
 

Emerging manager hedge funds and managed futures funds posted their sixth consecutive positive month in April, according to an estimation based on the data of 240 funds listed in Opalesque Solutions' Emanagers database.


The Emanagers Total Index was up 0.72% last month, resulting in a year-to-date performance of +3.18%. Since inception in January 2009, the index returned 69%, compared to 44% for the Eurekahedge Hedge Fund Index and 61% for the MSCI World Index.



Both hedge funds and CTAs were successful in April: The Emanagers Hedge Fund Index gained 0.79% (+4.41% YTD), while the Emanagers CTA Index was up 0.59% (+0.97% YTD).


While new hedge fund managers performed in line with their established peers, managed futures strategies traded by emerging managers failed to keep up with the industry's largest firms: The Eurekahedge Hedge Fund Index rose 0.82% (+3.79% YTD) and the Newedge CTA Index gained 1.45% (+4.36% YTD).



Long positions did well as the MSCI World index advanced 2.90% last month:


- Global macro hedge funds delivered the best results last month with an average gain of 2.56%. Event-driven (+0.97%), equity long-bias (+0.63%) and relative value strategies (+0.23%) were profitable in April, while multi-strategy (-0.57%) and equity L/S funds (-0.13%) suffered losses.


Top performing strategy in April 2013: Global macro



- Year-to-date, the ranking is led by event-driven (+9.19%) investment strategies. Global macro hedge funds are up 4.39% for the year, followed by directional (equity long-bias: +4.35%, equity L/S: 4.20%) and relative value strategies (+3.45%). Multi-strategy hedge funds gained 3.26% so far this year.


Over the past 12 months, Opalesque calculated MSCI-correlation coefficients of 86% for Emanagers hedge funds and -39% for Emanagers CTAs, resulting in equity-market betas of 28% and -16%.



Florian Guldner, Opalesque Research