Newedge, a global leader in multi-asset brokerage and clearing, today announced the performance for its suite of hedge fund indices for the month of October.
An increase in market volatility during October helped the Newedge Volatility Trading Index post strong positive returns for the month, with an increase of 1.12%, its best month since January 2012.
Quantitative Macro strategies outperformed Discretionary trading strategies, gaining 0.52% for the month, bringing YTD performance to 6.95%. The headline Newedge Macro Trading Index experienced roughly flat performance during October, posting a -0.12% return, meaning it stands at 1.57% for 2014 so far.
The Newedge Commodity Trading Index remains in positive territory for the year to date, with returns of 2.33%, although it was slightly down in the month of October. The Commodity Equity sub-index experienced a volatile period of monthly returns and posted -2.05% in October.
James Skeggs, Global Head of Advisory Group at Newedge, said:
“Investor’s expectations of Volatility strategies were broadly fulfilled in October, producing positive returns as volatility and vol of vol increased.
Individual Macro and Commodity strategies however had more variable fortunes in October, resulting in the headline indices finishing largely unchanged for the month.
Index |
October Return |
YTD Return |
|
|
|
Newedge Macro Trading Index |
-0.12% |
1.57% |
Newedge Macro Trading Index (Quantitative) |
0.52% |
6.95% |
Newedge Macro Trading Index (Discretionary) |
-0.58% |
-1.24% |
Newedge Commodity Trading Index |
-0.82% |
2.33% |
Newedge Commodity Trading Index (Trading) |
-0.64% |
2.91% |
Newedge Commodity Trading Index (Equity) |
-2.05% |
-0.77% |
Newedge Volatility Trading Index |
1.12% |
-1.14% |
The Newedge Macro Trading Index includes global macro managers who typically employ top-down fundamental research to forecast the effect of global macroeconomic and political events on the valuation of financial instruments. These strategies may be either discretionary or systematic, and are frequently focused on a diversified basket of instruments.
The Newedge Commodity Trading Index includes funds that utilize a variety of investment strategies to profit from price moves in commodity markets. Managers may typically use either (i) a trading orientated approach, typically involving the trading of physical commodity products and/or of commodity derivative instruments in either directional or relative value strategies; or (ii) Long short equity strategies focused on commodity related stocks.
The Newedge Volatility Trading Index is a performance measure for the volatility trading and arbitrage style within the hedge fund universe.
Newedge’s Alternative Investment Solutions Group, part of Newedge’s Prime Clearing Services, is an innovator in providing investors with benchmarking tools representing key hedge fund strategy styles.