Fri, Dec 13, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds end five-month growth with losses of 0.19% in June (3.03% YTD)

Wednesday, July 12, 2017
Opalesque Industry Update - Hedge funds ended their five-month winning streak, down 0.19%1 for June 2017 based on preliminary numbers for the month. The average return of the Eurekahedge Hedge Fund Index was drawn into negative territory in June as developed market mandates underperformed their emerging market peers; with trend-following and macro strategies lagging behind the pack.

Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) were up 0.18% over the same period. Equity markets posted mixed results with European equities ending the month in the red whilst North American mandates posted modest gains. In contrast emerging market equity mandates were the bright spot led by strong gains for Chinese equities. Concerns over tightening monetary policy in developed markets (sans Japan) weighted on market sentiment, though there was some support from positive macro numbers coming out from China where Q2 GDP growth appears to be holding steady.

Among regional mandates, Japan mandated hedge funds topped the table for the month with gains of 1.58%, followed by Asia ex-Japan and Latin America mandated hedge funds with 1.12% and 0.86% growth respectively. Emerging markets hedge funds were also up this month with 0.67%. On the other hand, European hedge funds posted a decline of 0.18% while North American fund managers posted modest returns of 0.32%. On a year to-date basis, hedge funds are up 3.03% while underlying markets grew 7.65%. Asia ex-Japan hedge fund managers lead the table up 9.10% followed by their emerging markets and Latin American counterparts witnessing growth of 7.41% and 6.79% respectively.

Below are the key highlights for the month of June 2017:

  • Hedge funds lost 0.19% in June with underlying markets, as represented by the MSCI AC World Index (Local), up 0.18% over the same period. On a year-to-date basis, managers gained 3.03% while underlying markets were up 7.65%.
  • Among developed market mandates, Japanese hedge funds led on a year-to-date basis with 7.41% growth, followed by European hedge funds with 4.07% and North American hedge funds with 2.66%.
  • Among strategic mandates, equity long bias hedge funds led on a year-to-date basis, up 7.75%, followed by event driven hedge funds with 5.77% and short volatility hedge funds with 5.25%.
  • Emerging market mandates continued to outshine their developed market peers, with India, Greater China and Asia ex-Japan hedge funds posting returns of 14.61%, 12.05% and 9.10% respectively. Latin America and Eastern Europe mandated funds were also up 6.79% and 4.77% for the year.
  • Performance across fund sizes has varied, with mid-sized hedge funds (US$100 million - US$500 million) outperforming their billion dollar peers by almost 140 basis points for the year. The Eurekahedge Billion Dollar Hedge Fund Index was down 0.63% in June and up 1.77% year-to-date.
  • Systematic trend following strategies posted the steepest decline during the month, down 3.75% in June and 4.69% for the year. Long volatility hedge funds have been another casualty in 2017 with a loss of 6.55% in the first half of the year.
  • CTA/managed futures strategies dropped 1.95% for the year, with commodity focused hedge funds dipping 1.77% while FX focused strategies are up 1.99%.
Eurekahedge's indices: Source

Press release

Bg

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. 50 South Capital & Preqin highlight emerging manager outperformance in a new report[more]

    Bailey McCann, Opalesque New York for New Managers: New data from Preqin and 50 South Capital, the investment arm of Northern Trust, shows that emerging managers are outperforming established managers by almost 4% a

  2. An academic wrecking ball aims at hedge funds[more]

    From Bloomberg: Quant investing, and indeed much of the hedge fund industry, is built on the power and freedom that come with the ability to sell short. When you short a security (borrow and then sell it, meaning you make money if the price falls and you then re-buy it), you can profit when markets

  3. PE/VC: Private equity buys $101bn of European businesses, 30 under 30 venture capital 2020: Meet the young investors backing tech's next big thing[more]

    Private equity buys $101bn of European businesses From Bloomberg: European equities' cheap valuations have turned the region into a honeypot for private-equity and arbitrage funds looking to reap double-digit returns. With the buyout firms enjoying a massive amount of dry powder, especial

  4. PE/VC: The truth about private equity fund size, US VC investment in female founders hits all-time high[more]

    The truth about private equity fund size From Institutional Investor: As the end of the year approaches, institutional investors in private markets are wrapping up work on the last few funds we need to invest in to hit our targeted annual commitment levels. You see, private equity

  5. Crypto: Almost 70 crypto hedge funds have closed this year as institutional investors shy away, Central bank talk of launching cryptocurrencies is all bluff, Thailand and Hong Kong in crypto collaboration with cross border token project, Crypto loans see solid growth, platforms attract community interest, A Bitcoiner in the Senate? Is Bakkt CEO in US govt. good or bad for crypto?, Bank of France to test digital currency in 2020[more]

    Almost 70 crypto hedge funds have closed this year as institutional investors shy away From The Block Crypto: Nearly 70 crypto-focused hedge funds that largely cater to institutional investors, such as pension funds and family offices, have closed this year. The number of new fund