Investing May 1, 2003

Small Cap Hedge Funds Give Way to Mid, Large-Cap in March

May 1, 2003 (PLANSPONSOR.com) - Equity hedge funds focusing on mid- and large-cap issues bested their small-cap counterparts for the year ending March 30, according to MSCI data.
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In its Hedge Fund Indices Global Summary for March, an in-depth analysis of its already released March performance report (See MSCI Hedge Fund Index Slides 0.47% in March ), MSCI said the Mid- and Large-Cap Hedge funds increased 2.8% for the year ending in March, while the small-cap funds lost 7.3% in the same period.

Meanwhile, according to the MSCI, 58% of funds and 46% of assets in the MSCI Hedge Fund Indices are in equities, while 9% of funds and 13% of assets are in fixed income, and 23% of funds and 28% of assets hold a number of different assets. Among the equity funds, 32% of funds and 42% of assets are focused on large- and mid-cap, 14% of funds and 12% of assets are oriented toward mid- and small-cap, 6% of funds and 5% of assets are in small cap, and 47% of funds and 42% of assets don’t have a capitalization orientation.  

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In terms of geographic focus, MSCI said its index is dominated by funds where the holdings are concentrated in North America and others that hold assets from several different regions. The strongest performers in the year ending March 30 came from funds with developed markets holdings, which gained 16.9% in the last 12 months and 11.4% annually over the past three years. European-focused funds were up by 10.6% over the last year and 3.5% annually over three years. North American-focused funds – 52% of the funds in the index – lost 1.1% over the last year. Funds domiciled offshore turned in a 5.6% and 1.2% annual return over one and three years. Fixed income funds were up 8.6% in the last year.

Investing April 30, 2003

March Mass Layoffs Plummet from 2002

April 30, 2003 (PLANSPONSOR.com) - There was a hint of good labor market news Wednesday with word that the number of mass layoffs in March plummeted to its lowest level for March in three years.
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The US Department of Labor’s Bureau of Labor Statistics (BLS) reported that March 2003 saw 1,170 mass layoffs involving 109,838 workers. The BLS defines a mass layoff as one involving 50 workers or more and measures it by new filings for unemployment insurance benefits during the month.

Compared with March 2002, the number of layoffs declined by 20% and the number of workers involved fell by 32%.   From January through March 2003, the total number of layoffs at 4,767, and initial claims, at 450,312 (See  Manufacturing Sector Leads Early 2003 Mass Layoffs) , were lower than in January to March 2002 (4,989 and 564,141,respectively).

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Manufacturing industries accounted for 33% of all mass layoffs and 37% of all initial claims filed in March, little changed from a year earlier (34% and 37%, respectively).   The number of initial jobless benefits claimants was highest in food production (7,520, largely in frozen fruits and vegetables), followed by computer and electronic products (5,298) and transportation equipment (5,061).

  

The administrative and waste services sector accounted for 13% of events and initial claims filed during the month, with layoffs mostly in temporary help services.   Eight percent of all layoffs and 9% of initial jobless claims filed during the month were in retail trade, primarily in general merchandise stores.   Ten percent of the events and 7% of the initial claims were from construction, most often among specialty trade contractors.   The accommodation and food services sector accounted for 6% of events and initial claims, mostly from food service contractors.

  

Government establishments accounted for 4% of layoffs and 3% of initial jobless claims filed during the month, particularly in educational services. Compared with March 2002, the largest decreases in initial claims were reported in administrative and support services (-7,475) and professional and technical services (-5,206).   The largest over-the-year increase in initial claims was reported in motion picture and sound industries (+2,590).

Among the four regions, the highest number of initial claims in March due to mass layoffs was reported in the west at 46,815.

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