Fri, Oct 20, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Global hedge funds down 0.32% in August, up 3.18% up year to date reports Eurekahedge

Tuesday, October 01, 2013

The first view of August hedge fund returns from Eurekahedge revealed that they witnessed slightly negative returns in August amid increased risk aversion in global markets during the month. The Eurekahedge Hedge Fund Index was down 0.32% during the month, outperforming global stock indices as the MSCI World Index declined by 2.26% in August.

Key highlights for August 2013:

  • Global hedge fund AUM declined by more than US$6 billion in August
  • Launch activity picks up pace in 2013 with more than 500 funds launched globally July year-to-date
  • Hedge funds across major regions outperformed underlying markets in August
  • Distressed debt investing remains the best performing strategy in 2013, up 10% as at end-August
  • Japanese hedge funds outperformed the Nikkei 225 for the fourth consecutive month, up 18.82% year-to-date
  • At 2013 year-to-date, Eurekahedge is tracking more than 600 funds that have delivered over 15% and 200 funds that are up more than 30%

Regional Indices

Eurekahedge writes: "Risk aversion returned to global markets in August driven by a host of factors. The increased likelihood of the United States waging another war in the Middle East, weakening economic situation in emerging markets and continued concerns of QE tapering by the US Federal Reserve (Fed) were the main drivers of the negative market sentiment during the month. Some of the negativity was offset by improving global economic data as the Eurozone emerged from recession and China PMI numbers also displaying positive trends."

The firm found that returns were mixed among the various regional mandates with Latin American and North America hedge funds delivering the strongest returns. "The Eurekahedge Latin American Hedge Fund Index gained 0.48% in August mostly due to strong returns posted by Brazil-focused funds, which were up on the back of a strong rebound in the Bovespa (up 3.68%). Managers' holdings were buoyed by surprisingly strong GDP numbers for 2Q 2013 and currency intervention program announced by the Central Bank of Brazil. North American managers outperformed the S&P 500, which declined 3.13% in August. A number of managers had indicated net short positions for August, amid expectations of an announcement of QE-tapering by the Fed, which helped them to post positive returns during the month."

"Asian hedge funds outperformed the underlying markets once again, delivering healthy returns amid broadly negative trends in underlying market indices. Managers investing in Asia ex-Japan were up 0.13% while the MSCI Asia ex-Japan index declined 1.22% in August. Japan-focused hedge funds outperformed the underlying markets for the fourth consecutive month, gaining 0.11% while the Nikkei 225 was down 2.04% and the Tokyo Topix declined by 2.27% during the month."

Strategy Indices

In terms of strategies, Eurekahedge found that the various strategic indices saw mixed returns with event driven hedge funds posting the strongest gains of 0.95% as managers found various opportunities in a month where markets were driven by news flow. "The Eurekahedge Event Driven Hedge Fund Index is up 5.70% August 2013 year-to-date. Distressed debt hedge funds were up 0.35% in the month, outperforming the high-yield sector in August. The BofA Merrill Lynch High Yield Index lost 0.62% in August. Macro investing funds and CTA/managed futures funds delivered the largest losses during the month of 0.85% and 0.79% respectively. Most of these funds invest with a global mandate and the negative returns posted by them dragged the main Eurekahedge index into negative territory for the month. A number of managers reported losses from emerging markets and the fx sector. Trend following strategies were negative during the month amid reversals in equities and some commodities while funds employing short-term systematic strategies delivered some gains."

 
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.
Asia Pacific Intelligence
Asia Pacific Intelligence
Asia Pacific Intelligence
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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad