Tue, Jul 29, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Asian managers outperformed global peers as hedge funds up 8.00% in 2013 -Eurekahedge

Wednesday, January 15, 2014
Opalesque Industry Update - Hedge funds delivered their fourth consecutive month of positive returns as global markets ended the year on a strong note of optimism. The Eurekahedge Hedge Fund Index was up 0.99% during the month. The MSCI World Index gained 1.67% in the month of December.

Key highlights for December 2013:

  • Total assets in the hedge fund industry rose to US$2.01 trillion, the highest level on record since June 2008 when global AUM peaked at US$1.95 trillion
  • Net asset flows in 2013 stood at US$146.1 billion, with net allocations to North American managers standing at US$73.6 billion in year-to-date
  • European fund managers were up 8.79% in 2013 with net asset inflows for the year standing at US$62.4 billion - the highest level on record
  • Asia ex-Japan hedge funds outperformed underlying markets and were up 13.47% in 2013 with overall assets under management growing by US19.1 billion during the past year
  • Greater China focused hedge funds outperformed the Hang Seng Index by more than 16% in 2013
  • Latin America focused managers have outperformed the MSCI EM Latin America Index by more than 9% in 2013
  • Distressed debt investing remained the best performing strategy in 2013, up 16.76% for the year, followed by long/short equities which saw gains of 14.87%
  • Japanese hedge funds comprehensively outperformed all regional mandates, up 26.62% in 2013 In 2013, almost 2,750 funds in the Eurekahedge database achieved returns greater than 10% - of which over 1,000 were up more than 20% for the year

Regional Indices

Global market digested the news of the much awaited QE tapering as the Fed reiterated its resolve to keep interest rates low in order to sustain a continued recovery in the US economy. While North American and European markets edged upwards on the news, emerging market fears over capital outflows resurfaced with the MSCI Emerging Markets Index declining 0.93% during the month. Asian markets were mixed during the month as tightening liquidity in mainland China coupled with a decline in the country’s PMI gauge dampened investor sentiment.

All regional mandates ended the month in positive territory with Eastern Europe & Russia focused hedge fund managers delivering the strongest returns, up 2.50% - outperforming the MSCI Emerging Eastern Europe Index which declined 0.89% during the month. Japanese hedge fund managers delivered yet another month of strong performance with the Eurekahedge Japan Hedge Fund Index up 2.01% and 26.62% for the year as the Nikkei 225 Index climbed up 4.02%, helped by the 2.68% depreciation in the yen relative to the dollar. North American hedge fund managers were up 1.74% (10.36% for the year) as equity markets remained upbeat with the NASDAQ, S&P500 and DJIA gaining 2.87%, 2.36% and 3.05% respectively during the month. European hedge fund managers were up 1.04%, outperforming the MSCI Europe Index which gained 0.88% during the month. Asia ex-Japan hedge fund managers were up 0.92%, with Greater China focused hedge fund managers delivering their sixth consecutive month of positive returns, up by 1.39%. The Eurekahedge Asia ex Japan Hedge Fund Index gained 13.47% for the year, outperforming the MSCI Asia ex Pacific Japan Index which grew 6.54% in 2013. Emerging markets and Latin America focused hedge fund managers were up 0.44% and 0.12% respectively during the month and have outperformed underlying markets amid a difficult trading environment in 2013 as investors shied away from emerging economies.

Strategy Indices

All hedge fund strategies were in the positive with long/short equities hedge fund managers leading the pack with returns of 1.48% during the month as major equity markets trended upwards in December. Distressed debt hedge fund managers were up 1.34%, outperforming the BoFA Merrill Lynch US High Yield Index which gained 0.55% during the month. The Eurekahedge Distressed Debt Hedge Fund Index was up an impressive 16.76% in 2013. Relative value hedge fund managers rebounded from their November losses and were up 1.33% during the month, bringing their 2013 returns to 5.70%. CTA/managed futures hedge funds delivered their third consecutive month of positive returns, gaining 1.04% although the strategy remains in negative territory for the year - down 0.35%. Hedge fund managers utilising systematic trading strategies were up 0.75% while those using discretionary strategies were up 0.90%. Managers focused on commodities realised gains of 0.87% as the S&P Goldman Sachs Commodity Index climbed 1.93% during the month. Event driven and fixed income strategies gained 1.05% and 0.51% in December while managers utilising macro strategies were marginally positive with returns of 0.05%.

Eurekahedge

Press Release

BM

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. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass