Sun, Dec 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Eurekahedge reports hedge funds back in the black with 1.05% gain over September, 4.17% year to date

Thursday, November 07, 2013

Eurekahedge reported that hedge funds were back in the black in September as global markets trended upwards during the month. The Eurekahedge Hedge Fund Index was up 1.05%, 4.17% year to date, while global stock indices outperformed as the MSCI World Index gained 3.87% in September.

Key highlights from Eurekahedge for September 2013 included:

  • Total assets in the hedge fund industry stand at US$1.91 trillion, set to cross the highest level on record by end-2013
  • Assets in long/short equity hedge funds crossed the US$600 billion mark for the first time since 2008
  • Asia ex-Japan hedge funds have outperformed the underlying markets by more than 7% September year-to-date
  • Greater China focused hedge funds witnessed 3 months of positive returns, up 6.22% in the third quarter of 2013
  • Distressed debt investing remains the best performing strategy in 2013, up 11.25% September year-to-date
  • Japanese hedge funds remained ahead of other regions, up 21.25% September year-to-date

In terms of regional indices, Eurekahedge reports that global markets remained in headline-following mode during the month, rising in the first few weeks as the risk of a US strike on Syria declined. Positive macroeconomic data from Europe and China also pushed up market indices and the decision of the US Federal Reserve to maintain the pace of asset-purchase, added further strength to the rally. Markets declined in the latter half of the month as investor focus turned to the budget impasse in the US Congress.

All regions posted positive returns for the month with emerging markets focused funds posting the strongest gains. Eastern Europe & Russia investing managers were up 5.2% in September while Asia ex-Japan managers gained 2.81%. Eastern European markets posted a remarkable 5.88% during the month while Asia ex-Japan markets also posted excellent returns. The Hang Seng Index gained 5.19% in September, the Shanghai Composite grew 3.64% while in Indian the BSE Sensex gained 4.08%. For most of the year. the Eurekahedge Asia ex-Japan Hedge Fund Index has outperformed underlying markets and is up 5.90% September year-to-date, while the MSCI Asia Pacific ex-Japan is down 1.14% over the same period.

Japanese hedge funds also posted strong returns in September, up 2.69% as the Nikkei 225 - after four months of negative returns - witnessed a strong rally during September, fueled by global trends as well as Tokyo's winning bid to host the 2020 Summer Olympics. The Eurekahedge Japan Hedge Fund Index is up 21.25% September year-to-date. European, Latin American and North American funds were all up 1.43% on average in September.

By strategy, Eurekahedge found that most strategies were profitable in September with long/short equity and event driven funds posting the strongest returns on the back of strengthening equities during the month. Long/short equity funds were up 2.10% while event driven managers gained 1.90%. Increased risk appetite during the month also culminated in gains for distressed debt funds which were up 1.54% in September.

The Eurekahedge Distressed Debt Hedge Fund Index is up 11.25% September year-to-date, the highest among the various strategic mandates. CTA/managed futures funds posted yet another month of negative returns, down 0.72% in September; their fifth month of back-to-back losses for the managers. Trend following strategies witnessed losses due to reversals of market sentiment during the month. Managers allocating to commodities witnessed losses amid falling prices of precious metals, energy and soft commodities - the S&P Goldman Sachs Commodity Index dropped by 3.39% in September.

 
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und