Mon, Dec 9, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds down in May but 42% of funds book profits amidst re-escalating US-China trade war

Wednesday, June 12, 2019

Laxman Pai, Opalesque Asia:

The Eurekahedge Hedge Fund Index slumped 0.63% in May as hedge fund managers struggled to generate returns during the risk-off month.

According to Eurekahedge, the Trump administration's decision to raise tariffs on $200bn of Chinese imports signalled the escalation of the trade conflict between the US and China, leading to retaliatory tariffs from the other side.

The worsening global economic outlook pushed global equities into the red for the month, as indicated by the 6.12% decline posted by the MSCI ACWI (Local). On the other hand, the US 10-year treasury yield dipped to its lowest point in almost two years, as investors expect that the Fed will have to cut interest rates in near future.

Returns were mostly negative across geographic mandates in May, with Asia ex-Japan fund managers down 1.44%, and North American fund managers down 1.17%. Across strategies, managers utilising equity long-bias and trend following strategies suffered the biggest losses, as the two mandates were down 3.05% and 2.62% respectively.

Roughly 42.3% of the underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in May, and 13.9% of the hedge fund managers in the database managed to maintain double-digit returns over the first five months of 2019.

Looking at year-to-date performance, fund managers utilising equity long-bias strategies maintained their place at the top with 7.84% gain, despite the losses they......................

To view our full article Click here

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. Hedge fund Moore Capital to return money to external investors[more]

    B. G., Opalesque Geneva: Louis Bacon's Moore Capital Management is to return capital from its three macro hedge funds to investors. The funds will continue running partners' money and Bacon, 63, will reduce his involvement in trading, according to a letter to investors seen by

  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