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On an asset-weighted basis, hedge funds declined -1.77% in November, as captured by the Eurekahedge Asset Weighted Index - USD. In terms of 2021 performance, the index is only up 2.46%, highlighting the struggles for some of the larger asset managers over the year.

The Eurekahedge North American Hedge Fund Index declined -0.76% in November, outperforming the DJIA which fell -3.73% over the month. American stock markets came under pressure after Federal Reserve Chairman Jerome Powell indicated that a swifter tapering of asset purchases was under consideration, which surprised market participants given elevated risks from Omicron. On a year-to-date basis, North American fund managers were up 12.66%, recording their best November YTD performance since 2009.

The Eurekahedge European Hedge Fund Index declined -1.37% in November, outperforming the pan-European Euro Stoxx 50 which fell -4.41% over the month. Market risk sentiment was dampened due to the emergence of the new Omicron coronavirus variant which forced some European countries to reintroduce restrictions on activity. On a year-to-date basis, European fund managers were up 6.81%, recording their best November YTD performance since 2013.

The Eurekahedge Asia ex Japan Hedge Fund Index declined -0.19% in November, bringing the YTD gain to 6.73%. The mandate faced headwinds from the -2.92% decline of the MSCI AC Asia Pacific Ex Japan Index over the month as investors were spooked by the emergence of the Omicron variant of COVID-19 which could render existing vaccines less effective and necessitate the reimposition of restrictive lockdowns.

The Eurekahedge CTA/Managed Futures Hedge Fund Index declined -2.20% in November, outperforming the S&P GSCI Index which fell -10.82% over the month. Brent crude oil and West Texas intermediate crude oil fell -15.55% and -19.04% in November respectively due to concern the new Omicron variant would result in reduced demand. On a year-to-date basis, CTA/Managed Futures hedge funds were up 5.70%, recording their best November YTD performance since 2014.

The Eurekahedge Long Short Equities Hedge Fund Index declined -1.43% in November, erasing all gains made in the previous month after a hawkish turn from major central banks in the fight against inflation unsettled investors. On a year-to-date basis, long/short equities hedge funds were up 9.34%, recording the third highest November year-to-date return among the main strategic mandates.

The Eurekahedge Event Driven Hedge Fund Index declined -1.28% in November, erasing most gains made in October. On a year-to-date basis, event driven hedge funds were up 12.38%, recording their best November YTD performance since 2013.

The Eurekahedge Arbitrage Hedge Fund Index eked out a modest 0.25% return in November, bringing the YTD gain to 4.47% and extending its streak of consecutive positive monthly returns to four months. Arbitrage was the only strategy among the main strategic mandates that managed to post a positive return in November.

The CBOE Eurekahedge Long Volatility Hedge Fund Index gained 1.20% in November, bringing the November year-to-date return to -7.12%. Long volatility hedge funds benefitted from the 67.22% surge in the CBOE VIX in November due to increased uncertainty over how central banks and interest rates would respond to persistently high inflation and the impact of the Omicron variant on the trajectory of the economic recovery.

Fund managers focusing on cryptocurrencies declined -2.37% in November as tracked by the Eurekahedge Crypto-Currency Hedge Fund Index, outperforming Bitcoin which fell -6.52% over the same period. In terms of 2021 return, cryptocurrency hedge funds have gained 171.11%, outperforming Bitcoin which returned 101.03% over the first 11 months of the year.