Mon, Jan 22, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge Hedge Fund Index up 2.06% in February (4.30% YTD)

Thursday, March 08, 2012

Opalesque Industry Update - The Eurekahedge Hedge Fund Index was up 2.06% in February as optimism about European debt and strengthening global economy fueled rallies in the underlying markets. The MSCI World Index gained 4.55% as high risk appetite continued for the second month running. All regions and strategies finished the month with positive returns while the asset-weighted Mizuho-Eurekahedge Index was also up 1.64% in February.

Key highlights for February 2012:

  • The Eurekahedge Hedge Fund Index is up 4.30% for the first two months of the year, meaning the industry is enjoying its strongest start to a year in 12 years.
  • Hedge funds saw US$20 billion in net positive asset flows during January and February 2012.
  • Long/short equity funds have gained 6.2% year-to-date as of the end of February.
  • The asset weighted Mizuho-Eurekahedge Asia ex-Japan Hedge Fund Index is up nearly 10% in 2012.
  • Eastern Europe & Russia investing hedge funds are on a strong run in 2012, with returns up an impressive 12.57%.

Regional Indices
All regional mandates finished the month with positive returns with managers investing in Eastern Europe & Russia and Asia ex-Japan witnessing the largest gains. The Eurekahedge Eastern Europe & Russia Hedge Fund Index was up 6.10% in February, bringing its year-to-date (YTD) return to a substantial 12.57%. In addition to the overall positive global economic view, the underlying markets have benefitted from constructive moves by regional governments while managers investing in the region also gained from the sharp gains in the local currencies against the greenback.

Asia ex-Japan hedge funds delivered a 4.40% return for the month, bringing their February YTD figure to 8.84%. The regional managers have profited from a strong performance in the consumer and industrial sectors while also profiting from strengthening local currency exposures. The asset-weighted Mizuho-Eurekahedge Asia ex-Japan Index is up 9.55% February YTD, showing that larger funds have outperformed over the last two months.

Notable among other regions is the performance of European hedge funds, the Eurekahedge European Hedge Fund Index was up 5.14% February YTD as heightened risk appetite and improving sentiment about the European debt situation led to healthy performance in the underlying markets. Additionally, early reports indicate that European hedge funds have also started to attract capital from investors, implying that confidence in the region is returning.

Strategy Indices
Hedge funds with exposure to equities raked in the largest gains in February with long/short equity managers gaining 2.92%, event driven hedge funds up 2.44% and multi-strategy managers posting returns of 2.21% for the month. Sustained rallies in the equity markets (driven by strong corporate earnings and improving US economic indicators) provided equity managers with a healthy profit-making environment. The S&P 500 gained 4.06%, bringing its YTD return to 8.59% - the best first two months of the year since 1991. Long/short equity mangers captured most of the gains on offer during January and February, with their YTD return standing at 6.17%. Event driven managers benefitted from investing in companies with strong balance sheets, which had a number of low-value opportunities to gain from. All other strategies also posted healthy returns for the month and remain in the black February YTD.

Eurekahedge indices are available for download here: Source

fg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  2. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  3. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  4. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager

  5. Comment - Seeding arrangements: Structure, approach, and the current market[more]

    From international law firm K&L Gates: Private fund growth has exploded over the last several years. While some areas are hotter than others, overall the industry has seen substantial growth. Existing managers have been able to launch larger funds and new managers have been able to successfully ente