Opalesque Industry Update - - Hedge funds are up 3.45% year-to-date with roughly 18% of funds boasting double digit returns for the year, half the number for the same period last year. - Total net asset flows for 2014 were trimmed to US$55 billion for the year as hedge funds saw their fourth consecutive month of net outflows in October, with investors redeeming US$20.3 billion over the last four months. - CTA/managed futures funds reported performance-based gains of US$12.3 billion for the year; their highest October year-to-date gains since 2010. North American CTAs lead with year-to-date returns at 8.04%. - Asia ex-Japan focused funds grew their asset base by US$11.2 billion in 2014, and are up 7.44% October year-to-date, outperforming the MSCI Asia ex Japan by almost 300 basis points. - India investing hedge funds reported their ninth consecutive month of positive returns with managers deploying long/short equities up 47.30% year-to-date – outperforming the BSE Sensex by almost 16%. - European managers continued to face headwinds, down 0.56% for the month and 0.60% year-to-date; though the region’s specialist distressed debt investing funds are up 12.77% for the year.
Performance update Asia ex-Japan managers were the best performers during the month, returning 0.93% as markets in Greater China advanced on hopes that Chinese authorities will soon ease monetary conditions in a bid to engineer a soft landing for the economy. Latin American funds were also up 0.19% as Latin America’s biggest economy, Brazil, pared gains towards the end of the month when President Dilma Rousseff overcame her pro-business rival by a narrow margin to win the elections. The Eurekahedge North America Hedge Fund Index lost 0.14% despite the US S&P 500 Index gaining 2.32%, bolstered by recent positive US economic data, rising consumer confidence, falling jobless claims and expansionary PMI numbers - putting the US on track towards rate normalisation given its employment and inflation targets. The same scenario happened for Japanese managers, who lost 0.47% even as the benchmark Nikkei 225 index closed October up 1.49% as the BoJ announced an expansion of its monetary base, with momentum further building as the US$1.2 trillion Japan Government Pension Investment Fund (GPIF) announced of an increase in its allocation towards equities. On a year-to-date basis, Asia ex-Japan managers lead the table with returns of 7.44%, attributing much of their gains to exposure to Indian equities, which has risen 31.62%3 since the start of the year. Funds with a North American and Latin American mandate came in second and third place, delivering returns of 5.08% and 3.38% respectively. Japan focused funds returned 3.05% while European managers came in last place at 0.60%.
Mizuho-Eurekahedge Asset Weighted Index The asset weighted Mizuho-Eurekahedge Asia Pacific Hedge Fund Index gained 0.10% as Greater China equities saw good gains during the month, with the CSI 300 Index up 2.20%, though strong gains in the US dollar proved a drag on performance. As at October 2014 year-to-date, the Mizuho-Eurekahedge Asia Pacific Hedge Fund Index has gained 3.58%, outperforming the MSCI Asia Pacific Index4 by over 3%. The Eurekahedge Report - November 2014 Press release Bg |
Industry Updates
Eurekahedge Hedge Fund index up 3.45% YTD (est.)
Wednesday, November 19, 2014
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