Sat, Nov 16, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds up 0.86% in the calm month ahead of growth forecast cuts

Tuesday, March 12, 2019
Opalesque Industry Update - The Eurekahedge Hedge Fund Index gained 0.86% in February, supported by the global equity market which continued to rebound over a potential resolution of the US-China trade friction.

Hedge fund managers focusing on developed markets and Asia posted gains during the month, while Latin America and Eastern Europe mandates languished into the red. North American fund managers gained 1.46% during the month, while those focusing on Asia ex-Japan generated 2.77% returns.

On a year-to-date basis, the two mandates were up 5.01% and 5.32% respectively. The market anticipation over the end of the trade war resulted in a strong boost for the Chinese equity markets, with most of the major Chinese equity indices recording double-digit gains over the month.

The Eurekahedge Greater China Hedge Fund Index gained 7.04% in February, bringing its year-to-date return to 11.94% over the first two months of 2019.

Roughly 65.6% of the underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in February.

Fund managers utilising equity long-biased strategies topped the table with their 8.03% gain over the first two months of the year, while on the other end of the spectrum long volatility strategic mandate was down 6.47% year-to-date as market volatilities remained suppressed throughout January and February.

Key highlights for the month of February 2019:

- Hedge fund managers returned 0.86% in February, bringing their year-to-date gains to 3.22% as global equity markets continued to rebound during the month. The MSCI ACWI (Local) was up 3.03% in February and 10.61% year-to-date.

- On an asset-weighted basis, hedge funds were up 0.30% in February, as captured by the Mizuho Eurekahedge Hedge Fund Index (USD). The index was up 1.90% year-to-date after registering a loss of 4.30% throughout 2018.

- North American fund managers gained 1.46% in February, as the region's equity markets reacted positively to the dovish tone of the Fed and hopes that the US-China trade relations could improve.

- The Eurekahedge European Hedge Fund Index gained 0.26% in February, as signs of slowing economic growth persisted within the Eurozone.

- The Eurekahedge Commodity Hedge Fund Index gained 2.06% during the month, with managers citing the strength in energy sector and industrial metals as return drivers.

- Fund managers utilising AI/machine learning strategies were up 0.60% in February, bringing their year-to-date returns to 2.96%. The Eurekahedge AI Hedge Fund Index was down 5.26% in 2018.

- The Eurekahedge Crypto-Currency Hedge Fund Index gained 12.74% in February, recording its best month in nearly a year. Roughly half of the underlying crypto-currency hedge funds managed to outperform Bitcoin which gained 9.65% during the month.

- The Eurekahedge ILS Advisers Index slumped 0.39% in February, bringing its 2019 year-to-date return to 0.11%. ILS fund managers ended 2018 down 3.92% as the catastrophic losses suffered during the year's Atlantic hurricane season weighed on their returns.

Regional Indices

North American fund managers gained 5.01% as of February year-to-date, recovering from the losses they suffered over the last quarter of 2018.

The cautious tone of the Fed and anticipation over the US-China trade talk outcome as they entered the final phase of the negotiations helped equity markets gain during the month.

The Eurekahedge European Hedge Fund Index gained 0.26% in February, as the risk-on sentiment among investors was dampened by signs of weakening growth.

Asia ex-Japan mandate continued to rebound in February, as the US-China trade talk supported a strong rally in the Chinese equity markets.

The Eurekahedge Asia ex Japan Hedge Fund Index was up 2.77% during the month.

Strategy Indices

Returns were mostly positive across strategic mandates in February. The commodity hedge fund mandate outperformed most of its peers with a 2.06% return over the month, owing to the strong recovery of oil prices, which resulted from OPEC's production cut decision.

Event driven and long/short equities strategies benefited from the upward movement in the equity markets around the globe and ended the month up 1.33% and 1.28% respectively.

Fixed income fund managers gained 0.69% in February, as the dovish stance of most central banks from developed economies led to lower bond yield during the month.

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. PE/VC: Private equity is the new stock, Private equity fundraising in the US hits all-time high, Foreign private equity firms lead $152bn blitz on London Stock Exchange[more]

    Private equity is the new stock From Institutional Investor: The traditional portfolio of stocks and bonds needs an alternative investment shake-up after failed monetary policy, according to executives at JPMorgan Chase & Co.'s asset management unit. "We are in an odd cyclical posit

  2. Opinion: Cliff Asness: It's 'time to sin'[more]

    From Institutional Investor: Timing the market can be "deceptively difficult," as quantitative investor Cliff Asness has pointed out before. But now, the AQR Capital Management co-founder believes that while factor timing is "an ugly thing," it is "about time we did some" - specifically when it com

  3. Investing: Hedge fund Whitebox places big bet on gunmaker Remington, Quant funds exit Japanese bonds in worst sell-off since 2013[more]

    Hedge fund Whitebox places big bet on gunmaker Remington From Reuters: Whitebox Advisors LLC, a credit-focused hedge fund, has been quietly capitalizing on Wall Street's ambivalence toward gun manufacturers by replacing some banks as a lender to Remington Outdoor Company. Whitebox

  4. Tech: Investors race to tech start-ups despite SoftBank stumbles, Two Sigma launches risk management software[more]

    Investors race to tech start-ups despite SoftBank stumbles From FT: Investors are planning to pour billions more dollars into later stage tech start-ups, even as Japan's SoftBank reels from a succession of faltering bets. Stephen Schwarzman's Blackstone plans to raise between $3bn and $4b

  5. Regulatory: Carried interest tax rules slated for 2020, official says[more]

    From Bloomberg: The Treasury Department is planning to issue regulations restricting how hedge fund managers can claim a valuable tax break early next year, a top Treasury official said. The regulations will likely bar money managers from using S corporations to take advantage of an exemption