Hedge Fund Monthly Update – December 2013 (UBS)

December 2013

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

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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