Opalesque Industry Update - Hedge funds were up 1.83% in February 2014, according to Eurekahedge, recovering from their losses in the start of the year as the MSCI World Index posted gains of 3.87% during the month.|
Key takeaways for the month of February 2014:
∑ Hedge funds recovered from January losses - all investment strategies yielded positive returns during the month with long/short equities and distressed debt leading with gains of 2.42% and 2.33% respectively
∑ North American managers posted their sixth consecutive month of positive returns, up 2.46% during the month and 10.5% over the last 12 months
∑ All regional mandates delivered positive returns during the month, excluding Japan focused hedge funds which posted their second consecutive month of negative returns - down 1.06% in February
∑ Latin America focused managers outperformed the MSCI EM Latin America Index by 6% on a year-to-date basis
∑ Distressed debt investing hedge funds delivered their eighth consecutive month of positive returns - up 2.33% in February and 17.7% in the last 12 months
∑ Asset flow data from 2013 shows that 2,027 hedge funds had positive asset flows during the year, out of which 357 managers raised more than US$100 million. Meanwhile, 879 hedge funds recorded net asset outflows in the previous year while 1,557 funds reported marginal or no inflows
All regional mandates, with the exception of Japan, ended the month in positive territory with North America focused hedge funds realising the strongest gains. The Eurekahedge North American Hedge Fund Index was up 2.46% as MSCI North America Index gained 4.47% during the month. European fund managers were up 1.87% with the FTSE 100, DAX and CAC Index rising 4.60%, 4.14% and 5.82% respectively. Fund managers focused on Eastern Europe and Russia were up 0.29% during the month, emerging largely unscathed as the crisis in Ukraine intensified towards the month-end. Latin America focused hedge funds outperformed underlying markets yet again, with managers delivering gains of 0.50% in contrast to a 0.69% decline in the MSCI EM Latin American Index. The Eurekahedge Asia ex Japan Hedge Fund Index was up 1.81%, with Greater China and India focused hedge funds delivering gains of 1.02% and 4.05%. Japan investing hedge funds were down 1.06% as the Yen remained largely flat versus the US dollar (marginally down 0.06%) with the Nikkei 225 Index and Tokyo Topix declining 0.49% and 0.74% during the month.
∑The Eurekahedge Asian Hedge Fund Awards 2014 will be taking place on 23 May 2014 at Capella Singapore.