Hedge Fund Monthly Update – December 2013 (UBS)

December 2013

KEYWORDS: long/short equity, event driven, equity hedge funds, Short Selling, global macro, Japan, CTA, commodity trading advisor, managed futures, United Kingdom, Federal Reserve Board, inflation, gold, China, Prime Brokerage, securities lending, Asia Pacific, capital introduction

Authors:

UBS

Organizations:
  • UBS

Summary:

This month’s highlights include:

- All hedge fund strategies were positive in November, led by Equity Long Short (+2.0%) and Event Driven (+1.9%).
- Equity hedge funds added to long positions, reduced shorts and increased net exposure into month end.
- Global Macro funds return +0.9%, boosted (again) by the Japan reflation trade (NKY +9.3%; USDJPY +4.2%).
- Continued rally in equities drives CTA returns (+1.8%); long USD and short gold positions add to gains.
- China surges on Plenary reforms, adding to returns for Asia focused hedge funds (+1.8%)
- In November, UBS clients bought Japan, sold US and UK; bought Technology, sold Utilities and Health Care.

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