The benchmark Eurekahedge Hedge Fund Index was down 0.27% in October, while the MSCI World Index gained 1.15% over the month. Total assets under management decreased by US$1.1 billion during the month as the sector witnessed performance-based gains of US$3.8 billion while registering net asset outflows of US$4.9 billion. The total size of the industry now stands at US$2.13 trillion.
Hedge funds posted their sixth month of negative returns for the year, with the Eurekahedge Hedge Fund Index down 0.27%, underperforming underlying markets as the MSCI World Index climbed 1.15% after a major worldwide selloff and subsequent recovery. In the US, the Federal Reserve completed its tapering program this month and announced that it is still on track towards normalising interest rates given its inflation and employment targets. Over in Asia, the Bank of Japan (BoJ) surprised market participants by going all out to tackle deflation and embarking on further easing, driving the yen to new lows against the greenback while sparking off another rally in the Nikkei.
Hedge funds registered their second consecutive month of losses in October, closing the month down another 0.27%, underperforming underlying markets as the MSCI World Index gained 1.15% after a wild month. Concerns about global growth prospects amid a deflationary environment prompted a rise in investor risk aversion in the earlier half of October, sparking a global sell-off which drove the S&P 500 Index briefly into correction territory, with US 10-year treasury yields dipping below 2%. However, the market subsequently made a sharp recovery in the latter half of the month, lifted by a positive slew of economic data including strong corporate earnings and GDP numbers. Even as the Federal Reserve officially ended its quantitative easing programme this month, central banks elsewhere remain committed to tackling deflation. The ECB maintained its firm stance on an expansionary fiscal policy as growth and inflation in the region remained weak, while the Bank of Japan (BoJ) surprised financi
The Latin American hedge fund industry has continued to provide remarkable performance growth and diversification for hedge fund investors over the years, with the Eurekahedge Latin America Hedge Fund Index gaining 612.00% since its inception in December 1999, comfortably outperforming the MSCI Latin America Index in the past two years. 2013 in particular was a banner year for Latin American hedge funds which returned 1.73% while the benchmark index plummeted 7.93%. The total assets under management (AUM) of the industry currently stand at US$59.1 billion, managed by a total of 397 hedge funds.
GaveKal Investments was founded in 2012 in Luxembourg and is fully owned by GaveKal Capital Limited, the investment management arm of the GaveKal Group.
GaveKal is known as one of the world's leading independent providers of global investment research. Founded in 2001 by Charles Gave, Anatole Kaletsky and Louis-Vincent Gave, it counts today eight partners and 45 employees with offices in Hong Kong, China, Europe and the US.
“It is difficult to overstate how much the regulatory landscape for hedge fund managers has changed over the past four years.” So said Norm Champ, director of the Securities and Exchange Commission’s Division of Investment Management, in a recent speech wherein he outlined how the SEC has built on its newfound authority to regulate private fund advisers, including by taking advantage of its increased access to information and new analytical tools. As we’ve previously discussed in this newsletter, since Dodd-Frank, most investment advisers to private funds, such as hedge funds, now have to register with the SEC, thus subjecting them to SEC oversight and regulatory requirements.
In recent years and in the wake of the global financial crisis, international financial centres (IFCs) such as the British Virgin Islands (BVI) and the Cayman Islands (Cayman) have faced unprecedented political and regulatory pressure from governments and international organizations to open up and become more transparent in their business practices. Louise Groom, Joanna Hossack and Ian Montgomery discuss the implications for their position as domiciles for Shariah compliant SPVs.