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from Global Investing:

After disappointing start to 2013, how will hedge funds catch up?

Despite the early-year rally in equity markets, some hedge funds seem to have had a disappointing start... yet again.

JP Morgan notes that the industry's benchmark HFRI index was up 2.8% by end-February,  well below the 4.6% for MSCI All-Country index.

Some 4.2 percent of hedge funds suffered losses of at least 5% in the first two months of year, compared with 3.3% in the same period in 2012. Still, this is better than 2008/2009, when losses of this magnitude were seen at more than one in five of hedge funds. According to JP Morgan:

In all, this performance picture is rather unexciting, raising the chance that hedge funds will add risk near term to chase the current momentum in equity markets. This performance chasing happened in each of the previous two years, with hedge funds raising their betas during March/April of 2011 or 2012.

from Global Investing:

Equities: risky assets or return assets?

Are equities risky assets, or return assets? Watch Mark Tinker, Fund manager of the AXA Framlington Global Opportunities Fund, who talks about how the market has more room for an upside now that distressed sellers are gone.

from MacroScope:

Australia SWF update

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Australia's Future Fund, the country's sovereign wealth fund, is billed by some as the most transparent state-owned investment fund in the world (perhaps after Norway).

According to the latest update on its portfolio, sent by email to subscribers (you can subscribe here easily), the Fund returned 5.1 percent in the April-June quarter, giving a loss for the financial year of minus 4.2 percent.

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