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 Type Fund Category 2014 YTD Returns %
Commodity Managed Futures 11.79
Equity-Pharma-Biotech Equity Long/Short 4.84
Equity-Healthcare Equity Long/Short 3.63
Commodity-Systematic Macro 2.27
Equity-Technology Equity Long/Short 1.98
Convertible Arbitrage Convertible Arbitrage 1.76
Commodity Macro 1.72
Discretionary Market Neutral 1.60
Equity Diversified Market Neutral 1.01
Arbitrage Fund of Funds 0.54
Distressed Distressed 0.49
Credit Long/Short Credit Long/Short 0.44
Fixed Income Arbitrage Fixed Income Arbitrage 0.35
Equity-Financial Equity Long/Short 0.34
Currency Macro 0.29
Statistical Arbitrage Market Neutral 0.28
Diversified Multi-Strategy 0.28
Event Driven Fund of Funds 0.27
Merger-Arbitrage Merger-Arbitrage 0.18
Equity-Mid-Small Cap Equity Long/Short 0.17
Multi-Strategy Market Neutral 0.11
Multi-Strategy Fund of Funds 0.07
Multi-Strategy Event Driven 0.01
Equity-Real Estate Equity Long/Short 0.00
Equity-Utility Equity Long/Short 0.00
Systematic Macro 0.00
Fixed Income Managed Futures 0.00
Credit Multi-Strategy 0.00
Currency Managed Futures -0.03
Long/Short Fund of Funds -0.09
Systematic Market Neutral -0.11
Arbitrage Volatility Arbitrage -0.11
Equity-Commodity Equity Long/Short -0.20
Fixed Income Macro -0.24
Trading Fund of Funds -1.05
Equity-Diversified Equity Long/Short -1.13
Diversified Macro -1.42
Equity-Energy Equity Long/Short -1.48
Macro Fund of Funds -2.29
Systematic Managed Futures -2.82
Equity-Diversified Event Driven -5.00
Equity-Diversified Long Only -7.05

HSBC: Commodities on investors’ radar again?

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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.

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.