Tuesday, August 17, 2010

Credit Suisse/Dow Jones Hedge Fund Index Performance July 2010

Credit Suisse have now reported for July 2010:

They report an average return of 1.59%, a bit below HFRI's preliminary 1.82%.

Recommend Books on Investing in Australia for My Reader

A reader commented on my last post:

I have a question for you. After 2 years of travelling I am coming back to Australia and I want to start investing my money wisely. I am completely new to the topic of investments and I was wondering if you could recommend a book I could read that would be a good starting point. There is lots of books on the market but I'm not sure how to choose. I'll appreciate you help. M"

Do any of you have recommendations on which books are worth reading. The only one I've bought recently was on superannuation. I'll have to check the author/title later on.

Please post your suggestions in the comments.

Sunday, August 08, 2010

Hedge Fund Index Performance July 2010

Preliminary results for the HFRI index:

Overall, hedge funds gained 1.82% vs. a 8.17% gain in global equities. As a result of the latter, short bias funds performed worst. HFRX gained 1.23% for the month.

Saturday, August 07, 2010

Moominvalley July 2010 Report

Everest Financial still hasn't reported fund results for May let alone June so the numbers are getting fuzzier... As usual everything is in US Dollars unless otherwise stated. This was a good month overall. The Australian Dollar rose around 6 US cents and the Pound and Euro also gained. Global stock markets rose sharply by 8.17% (MSCI World Index) and US markets 7.01% (S&P 500). In currency neutral terms we gained 5.70% and in Australian Dollar terms 3.89% in terms of investment returns, whereas investment gains in USD terms amounted to 10.94%.

Expenditure was a normal. Our car depreciated by $A600. Without that cost we spent near baseline levels. We spent more than $A500 on travel and so were otherwise really frugal. Net worth rose by $US40k to $US404k (or by $A17k to $A446k). The allocation to Australian large cap stocks rose by 2.1% of assets due to the strong market. All asset classes saw gains with the strongest gains in private equity, Australian large cap and US stocks. Total portfolio borrowing (including geared/leveraged funds) is 40 cents for each dollar of equity. Beta is around 1.2. Based on a rolling three year regression, alpha is just about zero against the MSCI World Index. Long-term I want to bring down the allocation to Australian large cap stocks and leverage to the market.