Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds on gain streak for third consecutive month, Eurekahedge Hedge Fund Index up 1.37% in November (7.39% YTD)

Monday, December 09, 2013
Opalesque Industry Update - Hedge funds delivered their third consecutive month of positive returns as global markets maintained their upward momentum. The Eurekahedge Hedge Fund Index was up 1.37% during the month, edging past the MSCI World Index which gained 1.27% in the month of November 2013.

Key highlights for November 2013:

- Total assets in the hedge fund industry are now at a record of US$1.97 trillion, surpassing the previous record of US$1.95 trillion in June 2008

- Net asset flows for the year recorded at US$122.2 billion, with net allocations to North American managers standing at US$64.0 billion year-to-date

- European fund managers were up 7.41% November year-to-date with net asset inflows for the year standing at US$48.2 billion - the highest level on record

- Asia ex-Japan hedge funds have outperformed the underlying markets by more than 10% November year-to-date

- Greater China focused hedge funds outperformed the Hang Seng Index by over 12% as at end-November

- Latin America focused managers posted fifth consecutive month of positive returns - outperforming the MSCI EM Latin America Index by almost 8% on a year-to-date basis

- Distressed debt investing remain the best performing strategy in 2013, up 14.81% November year-to-date

- Japanese hedge funds remained ahead of other regions, up 24% as at end-November

Eurekahedge is currently tracking over 1200 funds with year-to-date returns in excess of 15%

Regional Indices
Global markets remained upbeat on the back of positive macroeconomic data from the US, with incoming Fed chair Janet Yellen's testimony before the Senate's Banking Committee adding a further dose of optimism to the markets as she reiterated the necessity of the Fed's QE program for an enduring recovery in the US economy. Meanwhile, European markets were supported by the ECB's cut in its interest rates to 0.25% - the lowest on record as fears surfaced over the prospects of a deflationary spiral in the Euro zone region. Asian markets edged upwards on the back of strong third quarter GDP estimates from China, with markets reacting positively as details emerged regarding the CCP’s third plenary session.

All regional mandates, with the exception of Eastern Europe & Russia, posted positive returns with Asian hedge fund managers leading the way. The Eurekahedge Asia ex Japan Hedge Fund Index is up 1.73% during the month, outperforming the MSCI Asia Pacific ex Japan Index which was down 0.05%. Japanese fund managers posted yet another month of positive returns, up 1.27% as the Nikkei 225 Index climbed 9.31% helped by a fall in the value of the yen relative to the dollar. North American managers were up 1.18%, (8.59% year-to-date) as equity markets rallied to new highs with the NASDAQ, S&P500 and DJIA gaining 3.58%, 2.80% and 3.48% respectively during the month. European fund managers posted gains of 0.43%, ahead of the MSCI Europe Index(4) which was up 0.37% during the month. Emerging markets focused funds are up 0.47%, with fund managers exposed to India posting losses (down 1.88%) as the BSE Sensex Index declined 1.76% in November.

Strategy Indices
All hedge fund strategies, excluding relative value, were in the positive with fixed income fund managers leading the pack with returns of 7.28% during the month. A handful of fixed income funds which were investing in 'bitcoins' realised mammoth gains during the month as leading central banks recognised the virtual currency as legal tender. Long/short equity managers were up 0.97% as equity markets rallied, while event driven strategies raked in gains of 1.44%, with the Eurekahedge Event Driven Hedge Fund Index up 10.36% year-to-date. CTA/managed futures funds utilising systematic strategies were up 1.41% while those deploying quant strategies saw gains of 1.71% during the month. On the whole CTA/managed futures strategies continued their rebound and were up 1.22%, though it is the only strategy that remains in the red on a year-to-date basis - down 0.94%. Meanwhile, distressed debt hedge funds are up 1.19%, outperforming the BoFA Merrill Lynch US High Yield Index which gained 0.47% during the month. The Eurekahedge Distressed Debt Hedge Fund Index is up an impressive 14.81% on a year-to-date basis.

Eurekahedge indices are available for download from www.eurekahedge.com/indices/hedgefundindices.asp and are updated with the latest fund returns at 23:30 GMT every day.

Press release

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
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. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an