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Hedge funds up 2.85% for the year

Wednesday, November 16, 2016
Opalesque Industry Update - Hedge funds were up 2.85% for the year, on track for a better showing compared to 2015 when the average fund realised modest gains of 1.65%, according to the November 2016 Eurekahedge Report. Asset growth for the industry remains muted in 2016, expanding by US$1.7 billion, a sharp detraction from the US$102.5 billion growth seen in 2015.

While hedge fund capital allocations are in the red for 2016 with outflows of US$16.6 billion for the year, investor subscriptions have favoured CTA/managed futures, multi-strategy and relative value strategies which have seen inflows of US$12.2 billion, US$5.4 billion and US$4.0 billion respectively.

Hedge funds managing in excess of US$1 billion have seen their asset base decline by close to 2% over the year, with redemptions of US$27.0 billion while performance-based gains stood at US$7.3 billion. In contrast, sub-billion dollar funds have fared relatively better with inflows of US$10.4 billion and performance-based gains of US$11.0 billion.

Net flows for Asia ex-Japan mandated hedge funds went in the red for the year following steep redemptions worth US$2.1 billion in October – the highest monthly redemption on record since July 2012. Overall asset growth for Asian mandates is in the red for the year following disappointing returns from Japan (down 0.92%) and Greater China (down 2.15%).

Among emerging mandates, Latin American long/short equities hedge funds have posted the lowest volatilities levels over the three and five-year period compared to regional peers in India and China. More details in Eurekahedge’s 2016 Overview: Key Trends in Latin American Hedge Funds report:

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