Commodity Hedge Funds Strike Back: HSBC Weekly

The 6th Hedge Weekly incorporating Investment Funds Performance Review by the HSBC Alternative Investment Group for the week ended February 07, 2014, presents a wealth of data on how funds performed in 2014 to date, duly analyzed by strategy.

Average returns by strategy as per the report are shown below in descending order of performance in the table below:

Fund TypeFund Category2014 YTD Returns %
CommodityManaged Futures11.79
Equity-Pharma-BiotechEquity Long/Short4.84
Equity-HealthcareEquity Long/Short3.63
Equity-TechnologyEquity Long/Short1.98
Convertible ArbitrageConvertible Arbitrage1.76
DiscretionaryMarket Neutral1.60
Equity DiversifiedMarket Neutral1.01
ArbitrageFund of Funds0.54
Credit Long/ShortCredit Long/Short0.44
Fixed Income ArbitrageFixed Income Arbitrage0.35
Equity-FinancialEquity Long/Short0.34
Statistical ArbitrageMarket Neutral0.28
Event DrivenFund of Funds0.27
Equity-Mid-Small CapEquity Long/Short0.17
Multi-StrategyMarket Neutral0.11
Multi-StrategyFund of Funds0.07
Multi-StrategyEvent Driven0.01
Equity-Real EstateEquity Long/Short0.00
Equity-UtilityEquity Long/Short0.00
Fixed IncomeManaged Futures0.00
CurrencyManaged Futures-0.03
Long/ShortFund of Funds-0.09
SystematicMarket Neutral-0.11
ArbitrageVolatility Arbitrage-0.11
Equity-CommodityEquity Long/Short-0.20
Fixed IncomeMacro-0.24
TradingFund of Funds-1.05
Equity-DiversifiedEquity Long/Short-1.13
Equity-EnergyEquity Long/Short-1.48
MacroFund of Funds-2.29
SystematicManaged Futures-2.82
Equity-DiversifiedEvent Driven-5.00
Equity-DiversifiedLong Only-7.05

HSBC: Commodities on investors’ radar again?

It is interesting that a number of commodity biased funds have made an appearance at the top of the table, while the two worst performing types are equity-oriented. Defensive equity sectors such as healthcare and pharma biotech are also right there at the top sharing space with technology.

Commodity Hedge Funds Strike Back: HSBC Weekly
Source: Pixabay

The top performing commodity fund in the managed futures category, which scored a YTD return of 11.79% bears mention.

HSBC: Using weather to score on energy futures

The fund is the Cumulus Energy Fund Class A USD managed by Peter Brewer, with assets under management of $413M as of Dec 13.

The fund trades energy futures and its trading edge is the ability to make accurate calls on weather conditions (such as rainfall, temperature and wind) that have a direct bearing on the power and energy markets.

The fund has earned annualized returns of 28.71% since its inception in September 2006.