HFRX Daily Indices Mid-November 2013 Performance Update

Global financial markets posted mixed performance through mid-November, with a contrast between increased investors risk tolerance in US contributing to equity market gains and favorable response to technology IPOs while weak European economic growth data and interest rate cut contributed to equity market declines and currency weakness. US equity gains were led by Healthcare, Technology and Cyclical sectors, as technology IPOs posted substantial gains on strong investor demand. European equities were mixed through mid-November, with declines in Spain, Italy & UK partially offset by gains in Germany & the Netherlands. Emerging Asian equities posted declines led by the Philippines, Taiwan and India, while the Japanese Nikkei posted a partially offsetting gain. US yields rose as the yield curve steepened, with accommodative comments by incoming FOMC Chair contrasting with investor expectations of near term stimulus tapering, while European government bond yields were essentially unchanged through mid-November despite downward pressure on yields by ECB policy action. The Euro declined from a 24 month high against the US dollar on weak EU growth data, while the US dollar also gained against the Japanese Yen and EM currencies led by the Brazilian Real. Metals declined through mid-month, though pared losses on FOMC comments, with declines led by Copper, Aluminum and Silver; agricultural commodities posted declines across Sugar, Wheat and Hogs, partially offset by gains in Rice. Hedge funds posted gains month with the HFRX Global Hedge Fund Index posting a gain of +0.07% through mid-month, while the HFRX Absolute Return Index rose +0.32%.

HFRX Equity Hedge Index posted a gain of +0.38% through mid-November, with gains across Fundamental Value and Market Neutral strategies adding to the YTD gain of +9.1% for the Index. HFRX Fundamental Value Index rose +0.57% with gains concentrated in US large-cap Consumer and Financial sectors, HFRX EH:FV leads all EH sub-strategies with YTD gain of +13.7%. HFRX Market Neutral Index gained +0.53%, with gains in mean reverting and fundamental, factor-based models.

HFRX Event Driven Index posted a gain of +0.21% through mid-November, with contributions from Merger Arbitrage and Equity Special Situations; HFRX ED leads all strategy indices with a gain of +13.1% YTD. HFRX Special Situations Index gained +0.34% for the month, continuing lead all sub-strategies with a YTD gain of +17.15%; the Index had contributions from core positioning in Elan, American Realty, Tribune Co., Ferro, Chemtura, Penn West and Life Technologies. HFRX Merger Arbitrage Index posted a gain of +0.21%, with contributions from transactions in NYSE/IntercontinentalExchange, Capital Source/Pacwest Bancorp, Akorn/Hi-Tech Pharmacal, FNB/BCSB Bancorp, Koch/Molex and Thermo Fisher/Life Technologies. The HFRX Distressed Index declined -0.17% for the period from various restructurings across Technology, Industrial and Basic Materials sectors.

HFRX Relative Value Arbitrage Index posted a decline of -0.10% through mid-November with modest declines across various fixed income strategies, including Convertible Arbitrage and Multi-Strategy managers. HFRX Convertible Arbitrage Index posted a decline of -0.87%, paring the YTD gain of the Index to +9.0%, with negative contribution from volatility and gamma positions. HFRX MLP Index gained +0.53% for the month, while the HFRX Fixed Income Credit Index posted a modest decline of -0.06% for the period.

HFRX Macro Index posted decline of -0.31% through mid-November, with positive contributions from Fixed Income & Systematic CTA strategies offset by weakness in Currency and Emerging Markets strategies. HFRX Macro: Systematic Diversified Index posted a gain of +0.09%, with contributions from equities, commodities and fixed income exposure. The HFRX Emerging Markets Index posted a decline of -0.95% from declines in Brazil and Currency exposure.


Comments reference performance as published through November 15, 2013.

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HFRU Indices: Mid-November Performance Update

Global financial markets posted mixed performance through mid-November, with a contrast between increased investors risk tolerance in US contributing to equity market gains and favorable response to technology IPOs while weak European economic growth data and interest rate cut contributed to equity market declines and currency weakness. US equity gains were led by Healthcare, Technology and Cyclical sectors, as technology IPOs posted substantial gains on strong investor demand. European equities were mixed through mid-November, with declines in Spain, Italy & UK partially offset by gains in Germany & the Netherlands. Emerging Asian equities posted declines led by the Philippines, Taiwan and India, while the Japanese Nikkei posted a partially offsetting gain. US yields rose as the yield curve steepened, with accommodative comments by incoming FOMC Chair contrasting with investor expectations of near term stimulus tapering, while European government bond yields were essentially unchanged through mid-November despite downward pressure on yields by ECB policy action. The Euro declined from a 24 month high against the US dollar on weak EU growth data, while the US dollar also gained against the Japanese Yen and EM currencies led by the Brazilian Real. Metals declined through mid-month, though pared losses on FOMC comments, with declines led by Copper, Aluminum and Silver; agricultural commodities posted declines across Sugar, Wheat and Hogs, partially offset by gains in Rice. UCITS compliant Hedge funds posted gains, with the HFRU Hedge Fund Composite Index gaining +0.19% through mid-November.

• HFRU Equity Hedge Index posted a gain of +0.41% through mid-November, with positive contributions from Global equities with concentration in Healthcare, Technology, European and Japanese equity, partially offset by exposure to Turkey, Brazil and India.
  
  
• HFRU Event Driven Index posted a gain of +0.22% through mid-November, with contributions from European Equity Special Situations and mixed performance from Merger Arbitrage strategies, while Emerging Market exposure and credit strategies detracted from performance.
  
  
• HFRU Relative Value Arbitrage Index posted a gain of +0.13% through mid-November, with gains in Global Convertible Arbitrage, Fixed Income and Asset-Backed strategies, partially offset by declines in Volatility and Emerging Markets exposure.
  
  
• HFRU Macro Index posted a decline of -0.15%through mid-November, with contributions from European Multi-Strategy and Global Systematic managers which were offset by declines in Commodity Metals and Emerging Market exposure.
  

The HFRU Indices are published on a daily basis and comprise the most comprehensive benchmarks of UCITS hedge fund performance available. HFRU Indices are representative of the complete universe of hedge funds compliant with UCITS guidelines, and include four strategy indices (Equity Hedge, Event Driven, Macro and Relative Value Arbitrage) and an aggregate HFRU Hedge Fund Composite Index.

Learn more at WWW.HFRU.EU

Comments reflect performance figures as of November 15, 2013.

HFRI Indices October 2013 Performance Notes

HEDGE FUNDS GAIN TO BEGIN FOURTH QUARTER AS U.S. OUTLOOK IMPROVES

Macro & CTA strategies register best gains since January; Equity, Event funds lead industry with best YTD performance since 2009

CHICAGO, (November 7, 2013) - Hedge funds posted broad-based gains to begin the fourth quarter, as the U.S. government shutdown concluded while investors and fund managers positioned for an anticipated reduction of the Federal Reserve's stimulus measures in early 2014. The HFRI Fund Weighted Composite Index (FWC) gained +1.5 percent for October, the 10th gain in the last 12 months, with positive contributions across all strategies led by Equity Hedge and Event Driven, as was reported today by HFR, the established leader in indexation, analysis and research of the global hedge fund industry. The FWC Index has gained +7.2 percent through October, the best YTD performance since 2009 when it gained +20.0 percent.


Comments reference Flash Update performance figures as posted on November 7, 2013.


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2014 Glocap Hedge Fund Compensation Report Published

HEDGE FUND COMPENSATION RISES AS HIRING TRENDS SHIFT ON RECORD INDUSTRY ASSETS

Compensation gains for Portfolio Managers, Risk Managers reflect increased investor visibility;
Bonus structure, role evolution contributes to greater alignment of interest

CHICAGO, (October 31, 2013) - Hedge fund industry compensation rose for the 3rd consecutive year, as trends of increased investor visibility, organizational transparency, increased reporting requirements and role evolution accelerated on record industry assets. Average compensation rose between five and ten percent in 2013, with wide categorical and performance driven disparity, and with Portfolio Managers, Senior Analysts and Risk Managers at top performing funds seeing the highest relative increases, according the latest 2014 Glocap Hedge Fund Compensation Report, published today by Glocap and HFR.

Over the first three quarters of 2013, global hedge fund industry capital exceeded $2.51 trillion, the fifth consecutive quarterly asset level record, as the HFRI Fund Weighted Composite Index gained +5.5 percent YTD. The percentage of all hedge funds which reached their high watermarks YTD through September also rose to 62 percent, a sharp increase from the 48.4 percent of funds which reached respective high watermarks in 2012.

Press Release | Learn more about the Report
Other blog posts on the topic of Hedge Fund compensation:


http://blogs.barrons.com/focusonfunds/2013/10/31/entry-level-hedge-fund-pay-353000/?mod=BOLBlog

http://blogs.wsj.com/moneybeat/2013/10/31/wanted-entry-level-hedgies-353000-salary/

http://www.opalesque.com/industry-updates/3581/hedge-fund-industry-compensation-rises-for-third-consecutive.html