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Hedge funds off to best start of year since 2000: eVestment

Tuesday, March 13, 2012 - 02:57

Mar. 13 - Peter Laurelli of eVestment Alliance says that hedge funds have recorded 4.6% gains so far this year and that equity funds exposed to emerging markets posted the best returns.

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Funds dropped to their best start since the turn of the century but -- performance last. For more I'm joined by Peter at the rally vice president at. Alliance -- your hedge fund index is up about four point 6% so far this year it does paled compared with the S&P is doing which is up about 9%. Our hedge strategies less effective in this current market. Well the -- industry itself is is very diverse and our money strategies fixed income strategies along with equity strategy so. Performance lagging the S&P is not so much a factor of -- for performance by equity strategies that size result of a diverse. -- for energy producing an aggregate return that's. Generally don't listen you'll see from equity markets which strategies are tracking the most investors this year. So far we've seen inflows to credit related strategies. We've seen macro strategies can above average interest from investors and also a large multi strategy funds. Are you seeing a marked difference in performance verses big. And small hedge funds and what's behind that difference. Sure to start the year smaller funds have performed better funds under billion dollars return about. I believe is about. Hundred basis points more than than -- -- rebellion and in the primary differences that larger funds are diverse and be more diversified across strategies across asset classes. A smaller funds to attend the and more focused -- Towards single -- emerging markets prime example emerging market funds performed. Very well this here and there is a larger concentration a smaller ones that are -- farmers' markets. What I think it was interesting in those emerging market strategies Brazil and Russia leading the way so far China is not is the China story played out. It whether or not it's time stories played and it's something that that that economists who probably answer investment of funds investing in Chinese markets have. They've outperformed broad equity markets -- -- yesterday. It's true that go to China has slowed. And it. On on the investor -- interest in the -- that fund flows to funds investing in Asian markets actually declined this year. So from investor perspective it looks like there is -- hesitation towards. Mortgage strategies among the best performers when you look back over the past twelve months now what should we read into that does that tell us that. Housing situation is improving. I don't think it's so much that the current housing situation is about the these types of assets that are that are available. And the the price at which these mortgage funds can pick them up. It's a sign that there's still a lot of opportunity. In these legacy mortgage related securities. Peter the rally at its best and thanks so much thank you very much I'm Rhonda -- this is writers.

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Hedge funds off to best start of year since 2000: eVestment

Tuesday, March 13, 2012 - 02:57