The benchmark Eurekahedge Hedge Fund Index was up 0.97% in February, while the MSCI World Index was up 2.72% over the month. Total assets under management (AUM) increased by US$26.1 billion during the month as the sector witnessed a performance-based increase of US$14.1 billion while registering net asset inflows of US$11.9 billion. The total size of the industry now stands at US$ 2.26 trillion.
The Eurekahedge Hedge Fund Index was up 0.97% in February while underlying markets as represented by the MSCI World Index gained 2.72% over the same period. Among regional mandates, Latin American managers led the table, up 2.75% during the month followed by Asia ex-Japan managers with 1.43%. Across strategies, distressed debt hedge funds were in the lead with 1.34% gains followed by event driven hedge funds with 1.26%.
Hedge funds gained 0.97% during the month of February. Meanwhile underlying markets as represented by the MSCI AC World Index (Local) gained 2.72% over the same period. February was marked by strong performance in US equities on the back of Trump’s fiscal and monetary policy announcements with the S&P 500 ending the month up 3.78%. Economic data out of the US also shed a positive light on the region with a pick-up in inflation bolstered by retail activity.
Activist hedge funds, a sub-strategy of event driven hedge funds, deploy shareholder activism as a key cornerstone of their investment strategy and have closer interactions with management of the companies which they invest into. Cultural differences also play a part in the adopted style of activism with Western activist hedge funds pursuing a dynamic approach, while their Asian counterparts adopt a more engagement-styled activism. This special feature takes a quick look at activist hedge funds, which have markedly outperformed their global hedge fund peers in 2016.
Assets for the North American hedge fund industry grew by US$19.1 billion for annual year 2016, with strength led by manager performance as opposed to investor interest. Managers posted performance-based gains of US$34.0 billion in 2016, with the Eurekahedge North American Hedge Fund Index was up 7.77% over the same period, outperforming regional peers. Event driven mandated hedge funds led performance across strategic mandates, up 18.19% in 2016 followed by distressed debt and multi-strategy hedge funds which gained 12.86% and 11.17% respectively.
Assets for the North American hedge fund industry grew by US$19.1 billion for annual year 2016, with strength led by manager performance as opposed to investor interest. Manager posted performance-driven gains of US$34.0 billion in 2016, with the Eurekahedge North American Hedge Fund Index was up 7.77% over the same period, outperforming regional peers.
Founded in 1999, Pinpoint is an Asia-based investment management firm that serves institutional investors, pension funds, private banks, fund of funds, family offices and high net worth individuals. Pinpoint Asset Management Limited was incorporated in Hong Kong on 4 Jun 2010 and regulated by the Hong Kong Securities Futures Commission for Type 9 (asset management) activities.