Fri, May 25, 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. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven