Opalesque Solutions

'Alternative Alternatives' investment funds lost 1.42% in October (+1.99% YTD)

November 29, 2012

'Alternatives Alternatives' investment funds had a negative month of October, according to an estimation based on 702 single- and multi-manager funds currently listed in 25 categories in the Opalesque Solutions A SQUARE Fund Database (Source).

The Opalesque A SQUARE Index lost* 1.42% in October, leading to a year-to-date performance of +1.99%. Estimates for September and August were corrected to +0.61% and +0.88%, respectively. The A SQUARE Funds of Funds Index performed better with a loss of 0.18%, but is down 0.37% for the year 2012 so far.

- Structured finance and credit strategies performed well in October with gains of 2.35% and 0.99%. Infrastructure and real estate funds gained 1.22% and 0.31%, respectively. Trade finance strategies continued to deliver robust returns in a challenging environment with gains of 0.84%.

- Negative results were posted by all-commodity (-4.58%), base & precious metals (-4.18%) and Forex (-0.96%) traders.

- Year-to-date, the ranking is led by structured finance (+13.71) and credit (+9.98%), as well as infrastructure (+9.79) and real estate (+9.52) funds.

A SQUARE database weighting by asset classes

Over the last 12 months, the A SQUARE Index saw 7 negative and 5 positive months and performed flat (-0.02%). The A SQUARE Funds of Funds Index gives a similar picture with a 12-month loss of 0.07%.

A SQUARE did worse than hedge fund and stock indices, both in terms of October and one-year returns: The Eurekahedge Hedge Fund Index gained 2.87% over the last 12 months, and the MSCI World Index gained 6.94%.

Equity market correlation of A SQUARE Index funds was 62%, compared to 84% for the Eurekahedge Hedge Fund Index. The resulting betas are 22% and 25%.

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