A report released by eVestment|HFN Research is showing that the hedge fund industry has recorded a positive performance in August 2012. Hedge Funds have returned an average of 0.7% delivering a positive performance for the third consecutive month. The industry has so far registered a +1.8% in the second half and a +4.2% since the beginning of the year.
Although, the general up rally of the industry, Managed Futures and Currency focused strategies have recorded another negative month, mainly due to a second month of EUR strength against USD. On the contrary, Equity strategies enjoyed a positive month primarily because the verbal and concrete actions of the ECB in helping struggling Eurozone sovereigns. Directional Equity strategies returned 1.4%, scoring their best month since February 2012.
Credit funds confirmed a solid 2012, returning an average of 1.3% in August 2012 and consolidating their YTD at 7.5%. This is a direct result of credit opportunities in the Eurozone, the prolonged strength of the mortgage and securitised credit markets and a net shifting of assets away from Equity and into Credit focused strategies. Emerging Markets funds were the preferred choice over Japanese equity returning 2.0% during August 2012, moving up their YTD to 5.9%.
Credit focused and short duration US fixed income funds recorded a high demand, managing to gain a net inflow of around USD2.3bn in July 2012 and of an estimated USD23.0bn since the beginning of 2012. However, Global Macro and Managed Futures strategies registered a net outflow of about USD2.4bn in July 2012 alone.