Opalesque Solutions

'Alternative Alternatives' investment funds gain 0.53% in September (+3.34% YTD)

October 29, 2012

'Alternatives Alternatives' investment funds saw small gains last month, according to an estimation based on 719 single- and multi-manager funds currently listed in 25 categories in the Opalesque Solutions A SQUARE Fund Database (Source).

The Opalesque A SQUARE Index rose* 0.53% in September, resulting in a year-to-date performance of 3.34%. Estimates for August and July were corrected to +0.84% and +2.09%, respectively. The A SQUARE Funds of Funds Index lost 0.57%, bringing the year-to-date result to -0.72%.

- Base & precious metal strategies were the top performer in September with an average gain of 6.57%, followed by credit (+2.01%) and structured finance (+1.82%) funds. Real estate funds gained 1.10%.

- Negative results were posted by agriculture (-4.00%) and all-commodity (-0.16%) strategies.

- Year-to-date, the ranking is led by agriculture (+22.59%) and real estate (+14.22%). Credit and structured finance funds had a good year 2012 too, with average gains of 9.19% and 10.44%.

A SQUARE database weighting by asset classes

Over the last 12 months, the A SQUARE Index had 6 negative and 6 positive months, and gained 1.87%. The A SQUARE Funds of Funds Index was flat (+0.07%) in the same period.

A SQUARE funds once more performed worse than both hedge fund and stock indices, which were driven by a stock market rally: The Eurekahedge Hedge Fund Index gained 4.93% since October 2011, and the MSCI World Index gained 18.81%.

12-month equity market correlation of A SQUARE Index was 65%, compared to 84% for the Eurekahedge Hedge Fund Index. The resulting betas are 16% and 22%.

* Estimated numbers of the last 3 months are based on a calculation conducted on the 27th of the actual month. Earlier results are locked.

Florian Guldner, Opalesque Research