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Eurekahedge Hedge Fund Index up 3.25% YTD

Thursday, November 19, 2020
Opalesque Industry Update - Global hedge funds were down 0.05% in October, outperforming the global equity market by 2.24% for the second consecutive month.

In year-to-date terms, the Eurekahedge Hedge Fund Index was up 3.25%, compared to -3.29% of the MSCI ACWI, with around 70% of the constituents of global hedge funds outperforming the global equity market in 2020.

Assets under management for the global hedge funds industry have rebounded, increasing by US$97.7 billion over the seven months ending October 2020. This has come from performance-driven gains of US$127.7 billion partially offset by net investor outflows of US$15.0 billion. This marks a sharp recovery following a US$264.1 billion asset decline in Q1 2020.

The Eurekahedge North American Hedge Fund Index was up 0.34% in October, outperforming the S&P 500 and NASDAQ by 3.10% and 2.63% respectively.

In terms of year-to-date returns, North American hedge funds were up 4.39%, outperforming their European counterparts who were down 2.29% over the first 10 months of the year.

The Eurekahedge Greater China Hedge Fund Index was up 1.69% in October, supported by the positive performance of the Hang Seng Index and CSI 300 which gained 2.76% and 2.35% respectively. On a year-to-date basis, the Greater China mandates are up 21.28%, outperforming their Asian peers who generated 7.54% over the first 10 months of the year.

Eurekahedge Long Short Equities Hedge Fund Index up 0.08% in October

The Eurekahedge Long Short Equities Hedge Fund Index was up 0.08% in October, outperforming the MSCI ACWI which was down 2.29%.

Supported by the strong performance of the equity market since end-March, long/short equities hedge funds were up 4.79%, with more than 30% of its constituents having generated a double-digit return over the first 10 months of 2020.

The Eurekahedge Emerging Market Long Short Equities Hedge Fund Index was up 0.57% during the month, supported by the positive performance of the developing equity market as represented by the 1.14% return of the MSCI Emerging Market IMI.

In terms of year-to-date returns, the emerging market long/short equities funds were up 8.78%, outperforming their developed market counterparts in North America and Europe who returned 6.28% and -2.08% respectively as of October 2020.

Hedge fund managers utilising arbitrage strategies up 0.67% in October

Hedge fund managers utilising arbitrage strategies were up 0.67% in October, outperforming most of their major strategic peers over the month, with macro and multi-strategy hedge funds down 0.83% and 0.42% respectively.

On a year-to-date basis, arbitrage focused hedge funds also consistently outperformed their peers as they gained 6.66%, compared to 3.67% and 0.68% of macro and multi-strategy hedge funds over the first 10 months of 2020.

Hedge funds utilising structured credit strategies were up 0.70% during the month, recording their seventh consecutive month of positive returns, which accumulated to 18.18% since end-March as captured by the Eurekahedge Structured Credit Hedge Fund Index.

In terms of year-to-date returns, structured credit hedge funds were down 7.83% as of October 2020, underperforming their fixed income and distressed debt peers who returned 0.80% and -0.95% respectively.

Fund managers focusing on cryptocurrencies were up 14.88% in October as tracked by the Eurekahedge Crypto-Currency Hedge Fund Index, underperforming the performance of Bitcoin which was up 26.10%.

Looking at year-to-date return, cryptocurrencies hedge funds are up 89.25%, slightly ahead compared to the 87.19% return of Bitcoin over the first 10 months of 2020.

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