The benchmark Eurekahedge Hedge Fund Index was up 0.34% in March, while the MSCI World Index was up 0.79% over the month. Total assets under management (AUM) increased by US$12.0 billion during the month as the sector witnessed performance-based increase of US$2.7 billion while registering net asset inflows of US$9.3 billion. The total size of the industry now stands at US$ 2.27 trillion.
The Eurekahedge Hedge Fund Index was up 0.34% in March while underlying markets as represented by the MSCI World Index gained 0.79% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 2.02% during the month followed by European managers who were up 0.73%. Across strategies, long/short equities hedge funds led the table with gains of 1.06% followed by event driven hedge funds which were up 0.47%.
Hedge funds gained 0.34% during the month of March, with their first quarter performance up 2.29%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 0.79% in March and are up 5.06% in the first quarter of the year. March was marked by investor scepticism over the Trump administration as proposed healthcare reforms to replace Obama’s Affordable Care Act did not meet intended outcomes.
The rise of computer-driven strategies in the hedge fund sphere has caught considerable interest from the investment community over recent years. These quantitative hedge funds incorporate automated trading strategies, enabling them to capitalise on price discrepancies in the markets through executing trade positions within a very short span of time. While these systematic hedge funds have been employing methods of technical analysis into their trading strategies, sentiment analysis is also an up and coming feature in investment decisions. Text-mining data collected from various sources could be an indicator of ground sentiment during key market events, which can then be used as inputs in trading models or for risk control.
The hedge fund industry in Asia witnessed a difficult 2016 with investor redemptions a main contributor to the lethargy in asset base. Investors redeemed US$3.4 billion during the course of the year, with modest performance-based gains of US$1.6 billion recorded. Indeed, hedge funds globally have had a challenging year with strong redemption pressure from investors, and Asia as a whole was not isolated from this outlook.
The hedge fund industry in Asia witnessed a difficult 2016 with investor redemptions a main contributor to the lethargy in asset base. Investors redeemed US$3.4 billion during the course of the year, with modest performance-driven gains of US$1.6 billion recorded.
The Classic Car Fund was launched in September 2012, driven both by a passion for cars and for uncorrelated alternative assets. The philosophy of The Classic Car Fund is simple; buy well-selected cars at attractive prices that have had a thorough evaluation by an independent expert, and sell them later at a profit. The fund is not focused on any specific make or production year, but emphasis is clearly on sports cars from various periods. Holding times vary vastly but the fund does not fall in love with its investments. Some cars have enabled the fund to realise a healthy double-digit profit in as little as three months, while others will remain in the fund for up to a few years. Also, and perhaps of more interest for most, against a small fee fund investors may borrow and drive some cars in the fund over a day or a weekend. If anyone asks you can truthfully say it is your car, as it is part of the fund you are an owner of.
Kevin Ellis brings more than 30 years of financial, administrative and operations experience to the Firm. Previously, Mr. Ellis was the COO and principal of FISCO Appreciation Management LLC. He also served as a Founding Principal, Managing Director and COO at Labyrinth Group, LLC, an investment management firm utilising structured securities. Prior to that, he was Manager of Corporate Development at Arthur Anderson, LLP, where he focused on finance, mergers and acquisitions. Earlier in his career, he served as Vice President of Business Planning at SUPERVALU, Inc. Mr. Ellis is a graduate of Minnesota State University-Mankato BA Finance and earned a Juris Doctorate from William Mitchell College of Law and was admitted to the bar in Minnesota in 1983.
Mt. Logan Re, Ltd. is the securitisation vehicle for Everest Re Group, Ltd. (NYSE: RE), one of the largest professional (re)insurers in the world. Mt. Logan Re, domiciled in Bermuda, is registered as a Class 3 insurer and a Bermuda segregated accounts company and has been in operation for nearly four years in the insurance-linked security market.
Mizuho Alternative Investments (MAI) is an investment advisor dedicated to developing and managing quantitative investment strategies. MAI was established in April 2007 as a subsidiary of the Mizuho Financial Group, one of the largest full service financial institutions in the world with total assets of approximately US$1.7 trillion (as of 12/31/2016) and a global footprint. MAI is located in New York and manages or advises on approximately US$3.7 billion in assets, primarily for institutional clients (as of 3/31/2017). Investment products managed by MAI include CTA and quantitative global macro strategies and risk premia solutions.
The explosion in trading of equity volatility derivatives since the 2008 financial crisis has spawned an extraordinarily wide variety of approaches, postures, objectives and strategies pertaining to equity volatility. These varied objectives include risk mitigation, directional trading, market timing, volatility risk premium capture and relative value trading. These strategies might include approaches that could be described as systematic, discretionary, quantitative or opportunistic.