Mon, Aug 8, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds declined 1.62% in February (up 0.37% YTD) with total AUM growth still in the green

Tuesday, March 20, 2018
Opalesque Industry Update - • Hedge funds declined 1.62% in February and were up 0.37% year-to-date with total AUM growth still in the green despite losses in February which eroded the solid gains in January. Investor redemptions stood at US$5.0 billion in February while performance-based losses of US$34.2 billion were recorded. Almost 35% of the fund managers are in the red for the year in what is turning out to be the toughest start to the year for fund managers since 2016.

• While hedge fund capital allocations were in the red for the month of February, investor subscriptions have favoured CTA/managed futures and event driven strategies which have seen inflows of US$0.8 billion each followed by long/short equities and arbitrage strategies with inflows of US$0.4 billion each.

• Hedge funds managing in excess of US$1 billion reported their highest monthly performance-based decline on record, totalling US$25.5 billion while net outflows of US$4.6 billion were recorded. In contrast, sub-billion dollar hedge funds have fared relatively better with outflows of US$0.3 billion and performance-based losses of US$8.6 billion. The Eurekahedge Billion Dollar Hedge Fund Index was down 1.77% in February, its steepest monthly loss on record since the infamous May 2010 flash crash when the index lost 2.01%.

• The US$264.3 billion CTA/managed futures mandated hedge funds reported their biggest monthly performance-based losses since June 2004, totalling US$19.4 billion in February bringing their 2018 year-to-date performance-based figures down to the red, with losses totalling US$9.2 billion. Meanwhile, investors allocated US$0.8 billion into the mandate during the month and US$3.9 billion year-to-date.

• The US$1.66 trillion North American hedge fund industry posted the steepest performance-based losses of US$25.9 billion among regional mandates during the month while investor redemptions of US$1.1 billion were recorded. Asset base for the North American hedge fund industry grew by US$23.5 billion over the year with most of this growth attributed to net investor inflows of US$18.2 billion year-to-date, while performance-based gains totalling US$5.3 billion were recorded over the same period.

• Asia ex-Japan mandated hedge funds posted the steepest decline among regional mandates during the month, down 2.30% with underlying Greater China and Indian hedge fund managers losing 3.49% and 1.76% respectively. Performance-based losses of US$1.8 billion were recorded while investors redeemed US$0.8 billion from the mandate during the month.

• The average performance fee charged by North American hedge funds jumped to 18.49% in 2017 from 17.60% in 2016, before dropping to a historic low of 14.17% as of January 2018. Currently, the average management fee charged by North American hedge funds stands at 1.38%. For more details, please refer to the 2017 Overview: Key Trends in North American Hedge Funds report.

• The Eurekahedge Crypto-Currency Hedge Fund Index declined 16.83% in February, bringing its year-to-date losses to 22.47%, barely ahead of the price of bitcoin which declined 26% in the first two months of 2018.

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. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  2. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  3. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  4. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  5. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du