Fri, Nov 27, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge reports positive start to 2013 for hedge funds

Thursday, February 07, 2013
Opalesque Industry Update - Hedge funds posted excellent returns in January on the back of rising risk appetite and rallying equity markets globally. The Eurekahedge Hedge Fund Index was up 1.98% during the month, while the MSCI World Index gained 4.66%.

Key takeaways for the month of January 2013:

80% of hedge funds reported positive performance in January, compared to the 2012 monthly average of 60%

Asia ex-Japan and Eastern Europe & Russia hedge funds outperformed underlying markets, up by 5.03% and 7.67% respectively

Distressed debt hedge funds gained 3.47% in January; delivering the strongest results among the various strategies for 6 consecutive months with gains of 14% over this period

Japanese hedge funds witnessed the strongest January return on record

Relative value funds continued their winning streak into the 8th month with gains of 1.12% in January

The asset-weighted Mizuho-Eurekahedge Asia ex-Japan Long Short Equities Index was up 4.64% during the month

CTA/managed futures funds gained 1.69% in January – more than their annual 2012 return

Regional Indices

Taking the cue from performance end-December, markets continued their upward trajectory through January. Markets started trending after US leaders reached an agreement to avert the 'fiscal cliff' and were further supported by positive macro-economic data. Concerns of a global slowdown waned in the wake of upbeat news from Europe, the US and China while corporate earnings added greater impetus to the rallies.

Hedge funds across all regions posted positive returns for the month with Emerging Europe and Asian hedge funds leading the way. The Eurekahedge Eastern Europe & Russia Hedge Fund Index was up 7.67%, with funds that had exposure to the power and utilities sectors posting double-digit gains. These returns point to substantial outperformance as the RTS Stock Index gained 5.99% while the MSCI Eastern Europe Index3 was up 2.95%.

Asia ex-Japan funds also outperformed the broad Asian market indices; gaining 5.03% during the month while the MSCI Asia Pacific ex-Japan Index was up 3.02%. Top performing funds reported gains from the rallying equities, the power sector and healthy IPO activity in the region. Exposure to China was also profitable for most Asian managers – 4 out of the top 10 performing funds4 for January employed a Greater China regional mandate.

Strategy Indices

All strategic mandates posted positive returns for January with distressed debt funds delivering the strongest returns. Among the various hedge fund strategies, distressed debt has been the best performing for 6 consecutive months, gaining 14% since August 2012. The strong rebound in risk appetite since 2H 2012 and positive developments in Europe have helped to drive up the high yield and distressed debt sector – the BofA Merrill Lynch High Yield Index5 was up 1.63% in January. Among other strategies, managers investing in equities delivered the strongest returns as long/short equity managers gained 2.77% and event driven hedge funds posted returns of 1.88% during the month. CTA/managed futures funds also started the year with healthy returns, posting 1.69% in January as capital moved away from bond havens and into the stocks and commodities markets.

Press release


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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November