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Alternative Market Briefing

Hedge fund aggregate down 3.85% in 2018 but 8.6% of funds post double digit returns

Thursday, January 17, 2019

Laxman Pai, Opalesque Asia:

The Eurekahedge Hedge Fund Index was down 3.85% in 2018, after five consecutive months of losses. It ended the month of December down 1.31%.

According to Eurekahedge Report, concerns over the US treasuries yield curve inversion and further Fed tightening in 2019 triggered a sell-off across the global equity markets, marking December as the worst month of 2018 for equity markets.

Throughout the month, only 38.4% of hedge fund managers tracked by the Eurekahedge Hedge Fund Index were able to remain in the positive territory, while in comparison the global equity markets as represented by the MSCI AC World Index (Local) plummeted 7.61%.

Less-dovish-than-expected Fed stance, combined with weakness in the tech sector over global growth slowdown continued to weigh on the US equity markets, and resulted in 9.18% and 8.66% losses for the S&P 500 index and the Dow respectively - the worst December performance since the Great Depression for the latter.

On the other hand, uncertainties continued to loom over the European economies as Brexit negotiation remained inconclusive, despite the Italian government's success in striking a deal with the European Union over their budgetary planning.

Double-digit returns for 8.6% of the hedge fund managers in 2018

Looking at year-to-date performance, preliminary numbers revealed that roughly 8.6% of the hedge fund managers tracked by Eurekahedge were still able to maintain double-digit......................

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