Hedge Funds Weekly: January 30, 2017

The following is an excerpt from our Hedge Funds Weekly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds added 0.73% last week as rising equities continued to boost performance
  • Hedge funds are now up 1.45% for the month and year
  • All but two of the 30 hedge fund strategies we track earned positive returns
  • All of our multi-asset class benchmarks rose, with 60/40 strategies narrowly edging risk parity
  • Equities continued their strong January, gaining in most regions and sectors worldwide
  • Bonds posted modest, but generally positive returns globally
  • Losses in gold and agricultural commodities drove our broad commodity index downward
  • Developed and emerging market currencies both appreciated against the dollar
  • Most of our short volatility and variance factors rose
  • Trend following and momentum strategies profited both within and across asset classes
  • We currently estimate that hedge funds returned 0.98% in December, 0.31% more than our initial projection of 0.67%

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News Worth Reading: January 27, 2017

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • Hedge funds would be outperforming most asset classes if they just took more risk (pionline)
  • More hedge funds are shifting away from the 2 and 20 fee model (bloomberg)
  • It only takes about 20 years for a hedge fund to become wealthier than its clients (ofdollarsanddata)

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Hedge Funds Weekly: January 23, 2017

The following is an excerpt from our Hedge Funds Weekly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds fell 0.14% last week as broad equity losses stifled returns
  • Hedge funds are now up 0.78% for the month and year
  • Only seven of the 30 hedge fund strategies we track earned positive returns
  • Most major asset classes fell amid global financial weakness
  • Equities declined in most regions, sectors, and segments
  • All of our global bond indexes stumbled
  • Commodities declined modestly, fueled by losses in base metals and energy
  • Both developed and emerging market currencies appreciated against the dollar
  • Most of our short volatility and variance factors rose
  • Trend following and momentum strategies produced underwhelming results both within and across asset classes
  • We currently estimate that hedge funds returned 0.87% in December, 0.20% more than our initial projection of 0.67%

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Hedge Funds Weekly: January 16, 2017

The following is an excerpt from our Hedge Funds Weekly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds added 0.29% last week as foreign equities and sector exposures drove performance
  • Hedge funds are now up 0.92% for the month and year
  • All but four of the 30 hedge fund strategies we track earned positive returns
  • Diversified portfolios rose last week as mild, but broad-based gains overcame muted US stock performance
  • Equities dipped slightly in the US, but performed well overseas
  • Nearly all of our global bond indexes rose, with only foreign high yield bonds declining
  • Base metals soared, helping our broad commodity index overcome losses from energy commodities
  • Both developed and emerging market currencies appreciated against the dollar
  • All of our short volatility and variance factors rose
  • Trend following and momentum strategies tended to perform poorly both within and across asset classes
  • We currently estimate that hedge funds returned 0.86% in December, 0.19% more than our initial projection of 0.67%

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News Worth Reading: January 13, 2017

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • Does constant risk targeting undermine the diversification benefit of managed futures strategies? (alphaarchitect)
  • Look out, long/short funds are getting increasingly long (bloomberg)

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Hedge Funds Weekly: January 9, 2017

The following is an excerpt from our Hedge Funds Weekly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds added 0.55% last week as global equity gains fueled performance
  • Hedge funds are now up 0.55% for the month and year
  • All but one of the 30 hedge fund strategies we track earned positive returns
  • Aside from high quality foreign bonds, most asset groups worldwide notched gains
  • Equities rose in every major region and sector
  • Most fixed income securities gained globally
  • Energy commodities dipped, pulling down our broad index despite gains in every other commodity sector
  • Neither developed nor emerging market currencies moved significantly relative to the dollar
  • All of our short volatility and variance factors rose
  • Outside of commodities, trend following and momentum strategies tended to profit

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News Worth Reading: January 6, 2017

There’s always great information out there if you know where to look. The following comprises our list of news worth reading from the past week.

Hedge Funds

  • 10 predictions for the hedge fund industry in 2017 (hedgeco)
  • Investors are pressuring hedge funds to become more conservative (wsj)
  • Bridgewater’s Ray Dalio takes on the Wall Street Journal (institutionalinvestor)
  • AUM at Leon Cooperman’s Omega Advisors fell 27% in December (institutionalinvestor)

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Hedge Funds Monthly: December 2016

The following is an excerpt from our Hedge Funds Monthly report, which is available in the clients section. If you are not yet a client, please request access.

Highlights

  • Our factor-based projections estimate that hedge funds added 0.67% in December as global equity gains fueled performance
  • Hedge funds are now up 4.43% for the year
  • All but five of the 30 hedge fund strategies we track earned positive returns
  • Global risk assets finished 2016 with another positive month as equities, real estate, and commodities all rose
  • Equities gained in almost every region and sector
  • Corporate bonds rose even as developed market government bonds fell
  • Energy commodities soared, pushing our broad index upward despite losses in every other commodity sector
  • Both developed and emerging market currencies depreciated against the dollar
  • All of our short volatility and variance factors rose
  • Trend following and momentum strategies declined in and across most asset classes
  • Hedge funds returned 0.79% in November, 0.25% more than our initial projection of 0.54%

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