Mon, Jul 15, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurekahedge Hedge Fund Index up 0.88%1 in November (+2.58% YTD)

Tuesday, December 08, 2015
Opalesque Industry Update - Hedge funds continued their recovery in Q4 with the Eurekahedge Hedge Fund Index up 0.88%1 in November while the MSCI World Index grew by 0.38% during the month. On a year-to-date basis, hedge funds are up 2.58% while underlying markets as represented by the MSCI World have gained 1.78%.

November was dominated by the theme of a US rate hike later in the year, along with the ECB's dovish stance regarding further easing in the Eurozone. The latter has been to some extent realised earlier during this month when the ECB decided to cut deposit rates even further, adding to their menu an ever expansive array of negative yielding bonds on offer from countries otherwise plagued with anaemic growth. It would be interesting to see how this easy credit and the simultaneous calls for reforms aka austerity will lead the Eurozone onto firmer grounds. Meanwhile markets struggled with soft PMI data from China which led commodity markets further into the red. Oil prices remained under pressure during the month despite rising inventories, and it is unlikely that OPEC may be reducing production in the near term - especially with Saudi Arabia and Russia/Iran embroiled in a proxy war in Syria where the latter are likely to gain more from any price increase.

Key takeaways for the month of November 2015:

On a year-to-date basis, hedge funds are up 2.58%, which compares with a gain of 4.61% seen over the same period last year. Total AUM in hedge funds has grown by US$100 billion in 2015, with three-quarters of this gain coming from investor flows.

Among developed market mandates, Japanese managers lead with year-to-date gains of 6.36%, followed by European managers up 4.95% while North American managers trail behind with gains of 0.90%. North American managers look on track to post their worst annual return since 2011.

Greater China investing hedge funds posted their third consecutive month of gains and were up 0.85% in November, outperforming the CSI 300 Index by almost 9% on a year-to-date basis.

Distressed debt funds have posted the worst return among all hedge fund strategic mandates on a year-to-date basis, down 3.92% and are on track to post their worst performance since 2008. Relative value volatility funds however, have delivered the best gains of 5.58% in 2015.

Asia ex-Japan mandated hedge funds are up 7.15% at 2015 year-to-date, the biggest gainer among all hedge fund regional investment mandates, outperforming the MSCI AC Asia ex Japan Index by over 14%.

CTA/managed futures strategies posted the best gains among all strategic mandates in November, up 2.53% - their strongest monthly gain since January 2015. The strategy has attracted almost US$30 billion in investor flows the second highest following long/short equity strategies.

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. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from