Opalesque Solutions

'Alternative Alternatives' investment funds were up 1.39% in January

February 28, 2013

'Alternatives Alternatives' investment funds had a positive month of January, according to an estimation based on 636 single- and multi-manager funds currently listed in 25 categories in the Opalesque Solutions A SQUARE Fund Database (Source).

The Opalesque A SQUARE Index gained* 1.39% in the first month of 2013. Estimates for December and November were corrected to +0.56% and +0.02%, respectively. The A SQUARE Funds of Funds Index performed slightly worse with a gain of 0.68%.

- Infrastructure funds had an exceptionally good month of January, gaining an average of 7.60%. Structured finance (+2.84%) and credit (+1.82%) were among the top performing asset classes, as well as energy (+2.51%) and all-commodity (+2.20%) traders.

- Losses were only generated in the field of equity derivatives (-2.16%) and base & precious metals (-1.44%).

A SQUARE database weighting by asset classes

Due to a rally on the global stock markets, investment funds specializing in alternative asset classes underperformed both global hedge funds and equities for another month: The Eurekahedge Hedge Fund Index gained 2.22% in in January, while the MSCI World Index was up over 5%.

12 month rolling equity market correlation of A SQUARE Index funds was 58%, compared to 80% for the Eurekahedge Hedge Fund Index. A SQUARE funds' returns were more volatile though, resulting in equity market betas of 18% for the A SQUARE Index and 24% for the Eurekahedge Hedge Fund Index.

- Florian Guldner, Opalesque Research

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