Sun, Sep 20, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Equity long bias hedge funds topped the table, on track to record double-digit annual return

Tuesday, December 10, 2019
Opalesque Industry Update - The Eurekahedge Hedge Fund Index gained 0.84% in November, supported by the strong performance of the global equity market as represented by the 2.76% gain recorded by the MSCI ACWI (Local).

Market optimism towards the progress of the US-China trade talks, combined with strong corporate earnings season pushed US equities to new highs during the month. European equities also posted gains throughout the month as Germany narrowly avoided recession and pushed the DAX 2.87% higher over the month.

Over in Asia, the passage of the Hong Kong Human Rights and Democracy Act toward the end of the month was seen as a potential headwind for the ongoing trade negotiations.

Returns were mostly positive across geographic mandates in November, with fund managers focusing on North America up 1.15%, outperforming their European and Asia ex-Japan peers who were up 0.84% and 0.61%, respectively.

Japanese hedge funds returned 1.00% over the month of November, thanks to the announced fiscal stimulus, which resulted in strong equity market performance. Across strategies, long/short equities, event driven and multi-strategy fund managers were up 1.39%, 1.04% and 1.02% respectively throughout the month.

Roughly 67.9% of the underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in November, and 31.5% of the hedge fund managers in the database were able to maintain double-digit returns over the first 11 months of 2019.

Key highlights for the month of November 2019

Hedge fund managers were up 0.84% in November, pushing their year-to-date return to 7.22%. Expectations over the completion of the US-China phase one deal supported the risk sentiment among investors, which pushed the global equity market up 2.76% over the month. The MSCI ACWI (Local) was up 19.70% as of November 2019 year-to-date.

On an asset-weighted basis, hedge funds were up 0.73% in November, as captured by the Mizuho Eurekahedge Hedge Fund Index (USD). The index was up 5.89% over the first 11 months of the year.

The Eurekahedge North American Hedge Fund Index edged 1.15% higher during the month, as positive risk sentiment and robust corporate earnings boosted US equity markets.

The Eurekahedge Greater China Hedge Fund Index was up 0.77% in November, up 12.45% year-to-date despite weak equity market performance across the region. Disagreements surrounding tariff rollback and US agricultural purchases, combined with the ongoing political uncertainties in Hong Kong continued to weigh on the region's risk outlook.

Hedge fund managers utilising fixed income strategies were up 0.22% in November despite weakness in the global government bond market throughout the month. The ECB and the Fed have signalled that they are done with stimulus for the time being, resulting in higher yields. The Eurekahedge Fixed Income Index was up 6.76% year-to-date.

Fund managers utilising AI/machine learning strategies returned 3.43% in November. On a year-to-date basis, the Eurekahedge AI Hedge Fund Index was up 6.34%.

The Eurekahedge Crypto-Currency Hedge Fund Index was down 8.33% in November, outperforming Bitcoin which ended the month down 16.21%. Fund managers focusing on crypto-currencies are up 21.02% over the first 11 months of 2019.

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. Opalesque TV: Meet a Swiss fund manager who hedges with a difference[more]

    B. G., Opalesque Geneva: There is a quant manager in Zurich that does things a little differently, which has helped a lot so far this year. ICON Asset Management, which was mentioned in the

  2. Apollo jumps into impact investing with a new team[more]

    Laxman Pai, Opalesque Asia: Apollo Global Management is venturing into the world of impact investing, following some of its biggest peers in targeting funds dedicated to sustainability. The New York-based global alternative investment manager announced the leadership team for the new platform

  3. Investing: Empty hotels might just be next big short for hedge funds, Marshall Wace makes record bet against Lloyds, U.S. big tech dominates stock market after monster rally, leaving investors on edge, SoftBank plans to sell $14bn stake in telecom unit[more]

    Empty hotels might just be next big short for hedge funds From Bloomberg: Hedge funds and other short sellers are beginning to set their sights on a U.S. credit-derivatives index with outsized exposure to hotel debt as the pandemic sinks the hospitality industry into distress. The f

  4. PE/VC: Big private-equity firms are piling into tech deals, Private equity is a club and the ordinary investor is not invited, Private equity fees have become a rentier's bonanza[more]

    Big private-equity firms are piling into tech deals From Business Insider: Private-equity funds are dumping more money into technology companies, as the pandemic tanks sectors more reliant on in-person business. Enterprise software, long a private equity favorite, is getting even hotter

  5. ESG: How ESG data affects investors' fund choices: Morningstar, New challenges to the merits of ESG investing, Deciphering the trend: Will the real ESG contenders stand up[more]

    How ESG data affects investors' fund choices: Morningstar From Think Advisor: Advisors may wonder if it is important to present sustainable fund data to clients, especially during turbulent times. The answer: Not only will that information help investors choose funds, it also will edge