Tue, Sep 17, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFRI China hedge fund Index up 16% YTD through April

Friday, May 31, 2019
Opalesque Industry Update - Chinese hedge funds have posted record gains into mid-2019, dominating the risk-on sentiment-fueled surge of Emerging Markets performance that has led the industry through mid-year, as reported with the release of the HFR Asian Hedge Fund Industry Report and the HFR Emerging Markets Hedge Fund Industry Report from HFR®.

The HFRI China Index vaulted +16.1 percent YTD through April 2019, leading all hedge fund strategy and regional indices globally, as powerful investor risk-on sentiment overwhelmed the volatility associated with fluid and ongoing trade tariff negotiations.

The HFRI Fund Weighted Composite Index®, the leading benchmark of global hedge fund performance inclusive of all strategies and regions, jumped +7.1 percent YTD through April, registering the strongest start to a calendar year since 2006.

Emerging Markets hedge fund performance
Emerging Markets hedge fund performance across all regions has been strong, with powerful leadership from Chinese funds complemented by Russia/Eastern Europe, Latin America and MENA regions. The HFRI EM: Russia/Eastern Europe Index has advanced +8.5 percent YTD, including +2.6 percent in April, while the HFRI EM: Latin America Index advanced +6.4 percent. Middle East-focused hedge funds have also shown strong performance thus far in 2019, as the HFRI EM: MENA Index has surged +7.1 percent YTD, including +2.7 percent in April. Developed Asian hedge funds also gained through mid-2019, with the HFRI Japan Index advancing +3.3 percent YTD.

Strong performance of EM hedge funds drove total EM hedge fund capital to a record level to conclude 1Q19, increasing $12 billion from the prior quarter level of $221.9 billion and narrowly surpassing the previous record set in 1Q18. Total EM hedge fund capital rose to $233.94 billion (Chinese Renminbi: 1.61 trillion, Brazilian Real: 926 billion, Indian Rupee: 16.3 trillion, Russian Ruble: 15.2 trillion, Saudi Real: 877 billion.) topping the record of $233.87 billion from 1Q18. China-focused EM hedge fund capital surged by nearly 10 percent in 1Q19, rising to $53.3 billion.

Blockchain, Cryptocurrency and Currency exposures also contributed to gains across EM and Asian hedge funds through mid-2019. The HFR Blockchain Index surged +25.4 percent YTD through April, with expectations for an acceleration of the performance surge through May. Risk Premia Currency index sub-strategy exposure also posted strong gains as trade tariff related volatility spiked, US interest rates declined, and the Chinese Renminbi weakened. The HFR Bank Systematic Risk Premia Currency Index has gained +6.5 percent YTD, led by a the HFR Bank Systematic Risk Premia Currency Multi-Style Index, which has surged +17.2 percent thus far in 2019, inclusive of a +8.4 percent gain in April. Similarly, the HFR Bank Systematic Risk Premia Currency Volatility Index has jumped +13.4 percent YTD.

"Powerful performance gains throughout early 2019 drove Emerging Markets hedge funds capital to a record level, as risk-on, recovery sentiment prevailed despite fluid risks associated with ongoing trade tariff negotiations. China-focused hedge funds posted the strongest calendar year start since 2015 despite these risks, as regional equity markets surged and the renminbi weakened," stated Kenneth J. Heinz, President of HFR.

"The current trade tariff volatility and tension between rapidly oscillating risk-off and risk-on sentiment is likely to dominate financial markets over the intermediate term, but as we have seen throughout early 2019, this pattern has and is expected to continue to generate opportunities as well as risks. Funds which are able to navigate this fluid environment are likely to lead both Asian and global industry performance and growth in 2019."

Press release
Bg

Article source - Opalesque is not responsible for the content of external internet sites

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. Albright Capital builds on emerging markets impact strategy, signs on to IFC principles[more]

    Bailey McCann, Opalesque New York: Albright Capital has adopted the International Finance Corporation's Operating Principles for Impact Management. The firm has also developed its own impact measurement system as part of the implementation of the principles. The IFC's principles were

  2. Investing: Hedge funds getting burned as growth stocks trounced by value, Why investors are prioritizing health care in a big way, Fannie, Freddie soar as hedge funds score wins on two fronts[more]

    Hedge funds getting burned as growth stocks trounced by value From Bloomberg: A hedge-fund favorite is rapidly losing ground in the stock market just as one of the industry's least-loved sectors picks up. Growth stocks, generally companies that are seeing rapid profit increases, have drop

  3. PE/VC: Supersized unicorn: Root Insurance leaps to $3.65bn valuation with $350m round[more]

    Root Insurance is now valued at $3.65 billion after a $350 million funding round - the largest single venture capital round ever in the state. The 3-year-old auto insurer, now the startup with the highest valuation of any in Ohio, has raised a cumulative $523 million in VC and another $100 mi

  4. Testing hedge performance when stocks crash[more]

    Bonds have historically been a reliable buffer for stock exposure. But low yields and potential reversion to a more positive stock/bond correlation would likely translate to less protection. Gold has been a solid crisis hedge but has experienced long stretches of negative inflation-adjusted returns.

  5. PE/VC: The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct, Why venture capital firms need more women partners and entrepreneurs[more]

    The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct From Vox: Federal investigators are probing the conduct and practices of Mithril Capital, a venture capital firm co-founded by Peter Thiel, Recode has learned. US officials - including t