Barclays’ Hedge Fund Index Notches 0.81% Gains in September
- 16 of 17 funds in Barclays' hedge fund index gained ground in September 2016, with the total funds rising 0.81% MoM.
September has proven to be an upbeat month for a number of financial trading venues as well as markets, with Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term having returned in full after several tranquil trading months. Another area that performed positively was hedge funds – according to the Barclay Hedge Fund Index compiled by BarclayHedge, hedge funds gained 0.81% in September.
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Overall, 2016 has been a strong year as well for the Barclay Hedge Fund Index, with a YTD performance of 4.26%. Extrapolated over a monthly basis, 16 of 17 of Barclays’ hedge funds registered gains in September 2016. Leading the charge was the group’s Healthcare and Biotechnology Index, having notched an advance of 5.39%, its highest one-month gain since January of 2014.
A few other highlights of Barclays’ comprehensive hedge fund index was its Technology Index, which climbed 1.86% MoM in September – in addition, its distressed securities were 1.11% higher MoM, the equity long bias gained 0.89% MoM, and Emerging Markets (EM) added 0.90% MoM.
The one losing sector across Barclays’ composite of hedge funds in September was the Global Macro Index, having incurred a decline of -0.53% MoM.
YTD, a total of 12 of Barclay’s hedge fund indices have reaped positive returns leading up to September 30, 2016. Over this period, EM has been the best performing index, up 10.08% YTD, the Event Driven Index has climbed 8.56%, Distressed Securities moved 8.31% higher, the Technology Index has gained 4.64%, and Convertible Arbitrage is up 4.10% YTD.
Exceptions to this trend were Barclays’ European Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term index, down -4.95% YTD, the Global Macro Index, down 1.40% YTD, while the Pacific Rim Equities dropped -1.36% YTD, and Equity Market Neutral lost -0.81% YTD.
Lastly, the aggregated Barclay Fund of Funds Index did edge higher by 0.48% in September 2016, though it remains down -1.19% YTD.
According to Sol Waksman, founder and President of BarclayHedge, in a recent statement on the index performance: “Although surprises from major central banks whipsawed financial markets, most hedge fund strategies found a path to profitability in September.”
September has proven to be an upbeat month for a number of financial trading venues as well as markets, with Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term having returned in full after several tranquil trading months. Another area that performed positively was hedge funds – according to the Barclay Hedge Fund Index compiled by BarclayHedge, hedge funds gained 0.81% in September.
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Overall, 2016 has been a strong year as well for the Barclay Hedge Fund Index, with a YTD performance of 4.26%. Extrapolated over a monthly basis, 16 of 17 of Barclays’ hedge funds registered gains in September 2016. Leading the charge was the group’s Healthcare and Biotechnology Index, having notched an advance of 5.39%, its highest one-month gain since January of 2014.
A few other highlights of Barclays’ comprehensive hedge fund index was its Technology Index, which climbed 1.86% MoM in September – in addition, its distressed securities were 1.11% higher MoM, the equity long bias gained 0.89% MoM, and Emerging Markets (EM) added 0.90% MoM.
The one losing sector across Barclays’ composite of hedge funds in September was the Global Macro Index, having incurred a decline of -0.53% MoM.
YTD, a total of 12 of Barclay’s hedge fund indices have reaped positive returns leading up to September 30, 2016. Over this period, EM has been the best performing index, up 10.08% YTD, the Event Driven Index has climbed 8.56%, Distressed Securities moved 8.31% higher, the Technology Index has gained 4.64%, and Convertible Arbitrage is up 4.10% YTD.
Exceptions to this trend were Barclays’ European Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term index, down -4.95% YTD, the Global Macro Index, down 1.40% YTD, while the Pacific Rim Equities dropped -1.36% YTD, and Equity Market Neutral lost -0.81% YTD.
Lastly, the aggregated Barclay Fund of Funds Index did edge higher by 0.48% in September 2016, though it remains down -1.19% YTD.
According to Sol Waksman, founder and President of BarclayHedge, in a recent statement on the index performance: “Although surprises from major central banks whipsawed financial markets, most hedge fund strategies found a path to profitability in September.”