The benchmark Eurekahedge Hedge Fund Index was up 0.48% in September, while the MSCI World Index was up 0.19% over the month. Total assets under management decreased by US$5.77 billion during the month as the sector witnessed a performance-based increases of US$2.99 billion while registering net asset outflows of US$8.77 billion. The total size of the industry now stands at US$ 2.26 trillion.
The Eurekahedge Hedge Fund Index was up 0.48% in September while underlying markets as represented by the MSCI World Index grew 0.19% over the same period. Among regional mandates, Japan managers led the table up 1.27% during the month followed by North American managers who were up 0.93%. Across strategies, distressed debt hedge funds led the table with gains of 1.12% followed by event driven hedge funds with 0.86%.
Hedge funds were up 0.48% in September outperforming underlying markets, as represented by the MSCI AC World Index (Local) which gained 0.19% during the month. The trading scene was affected by a series of macro data, central bank meetings, OPEC and to a lesser extent the US Presidential debate. Strong jobs data throughout the past couple of month added to the rate hike anticipation at the Fed meeting, which however, ended with no action.
Long/short equity hedge fund strategies account for almost 36% of the global hedge fund asset under management (AUM), accounting for US$801.7 billion as of September 2016. Following a difficult start to the year, the strategy is on its way to recovery following four consecutive months of positive returns with the Eurekahedge Long Short Equity Hedge Fund Index up 2.47% for the year. However, given the challenging market environment since end 2013, long/short equity manager have posted low single digit returns over the last three years – up 3.69% in 2014, 3.04% in 2015 and 2.47% September 2016 YTD; a development that has slowed investor allocations into the strategy and contributed in part to a decline in the net growth activity (launches less closures). The outlook remains challenging for the moment, and the fourth quarter holds much in store from the outcome of the US elections to the Fed’s signalling on the pace of future rate hikes that could potentially limit the upside for the stra
The US$1.49 trillion North American hedge fund industry has been resilient amid challenging market conditions, with the trading environment over the course of the year being a rather exciting albeit nerve-wrecking one so far. The industry’s assets under management (AUM) grew by US$19.1 billion during the year largely on the back of performance-driven gains (US$14.3 billion). Investor inflows were somewhat lacklustre this year with US$4.8 billion of allocations to date, down from inflows of US$40.5 billion over the same period in 2015.
Eurekahedge’s North American hedge funds infographic sums up the industry as at October 2016. Find out more about North American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size and geographic AUM, head office locations and the best and worst performances of the year.
QUAD Capital Management (QCM) was set up in Hong Kong in February 2014 as a subsidiary of QUAD Investment Management (QIM) based in Seoul. QIM, which runs US$2.5 billion AUM, had a vision, from its beginning back in 2010, to go beyond Korea in terms of investment geography as well as capital raising. QCM is the firm’s frontier to achieve this goal and currently manages QUAD’s three offshore funds of which QUAD Asia Absolvt Fund is the firm’s flagship fund. HK Choi runs QCM as CEO of the firm while managing QUAD Asia Absolvt Fund as CIO. He has total of 17 years investment experiences of which six years are in distressed debt and private equity investment followed by 11 years in public equity hedge fund industry including six years at Eton Park.
As founder and Managing Member, Charles Mautz leads CHAM’s strategy and activities. He also oversees all investment activities including research, allocation and manager selection. Charles developed the firm’s focus on investing with locally-based managers throughout Asia and travels there frequently to identify the next rising stars.
With a bleak macroeconomic outlook, the often discussed theme is immigration policy in Japan. Immigration looks to be a compelling measure to tackle the Japanese issue of an ageing and declining population. This may seem like a far off, long term problem, but it may be more acute than people think when you consider the fact that the average age of a car buyer at Nissan Motor is 62 years old. Immigration policy is a well discussed theme, but Takumi Capital provides us with a closer look.
Real estate, buyout, infrastructure, debt, secondary, energy and other closed-end funds (each, a ‘Fund’) frequently seek to obtain the benefits of a subscription credit facility (a ‘Subscription Facility’). However, to the extent that uncalled capital commitments may not be available to support a Subscription Facility (for example, following expiration of the applicable investment or commitment period, a Fund’s organisational documentation does not contemplate a Subscription Facility) or a Subscription Facility already exists, alternative fund-level financing solutions may be available to Funds based on the inherent value of their investment portfolios (each, an ‘Investment’).
As family office executives set up a family office or review an existing family office, it is important to make sure the privacy and cybersecurity concerns are addressed and the governance and information security infrastructures are set up to get it right from the start. Working with a family office means personalised and tailored services are delivered that take into consideration a family’s entire situation, including their assets and liabilities, as well as wealth transfer, intergenerational and philanthropic objectives.
The benefits and uses of Bermuda segregated accounts companies (SACs) to ring-fence assets and liabilities in insurance and investment fund structures are well-known and well-tested. The Bermuda Supreme Court has consistently upheld confidence in, and strength of the statutory segregation and ring-fencing of assets and liabilities in a SAC.