The benchmark Eurekahedge Hedge Fund Index was up 0.03% in August, while the MSCI World Index was up 0.48% over the month. Total assets under management increased by US$0.04 billion during August as the sector witnessed performance-based increases of US$1.44 billion while registering net asset outflows of US$1.40 billion. The total size of the industry now stands at US$ 2.26 trillion.
The Eurekahedge Hedge Fund Index was up 0.03% in August while underlying markets as represented by the MSCI World Index gained 0.48% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 1.26% during the month followed by Latin American managers who were up 0.71%. Across strategies, distressed debt hedge funds led the table 1.71% returns followed by event driven hedge funds with 1.42%.
Hedge funds were up a marginal 0.03% in August, with much of the weakness being led by underlying CTA/managed futures and macro mandated hedge funds. Meanwhile, underlying markets, as represented by the MSCI AC World Index (Local) grew 0.48%. While August was a relatively quiet month, central bank actions dominated the trading scene especially towards the end of the month. This affected much of the trend-following and commodity-focused hedge funds, both of which are sub-sets of the broader CTA/managed futures strategy.
Volatility investing hedge funds are a much overlooked segment of the hedge fund industry - niche players who invest exclusively in volatility as either a standalone alpha generating strategy or as part of a diversified portfolio seeking to provide downside protection during periods of elevated market stress. The strategy though is ripe for a comeback, and a source of much added value for investors seeking to hedge their portfolios during uncertain times and possibly flirt with the notion of direct exposure to volatility as an asset class in its own right. The report which follows will review the performance of the CBOE Eurekahedge Volatility Indexes over the years and the added benefits that can arise from increasing allocations towards volatility investing strategies.
Global financial markets have been peppered with a series of events adding to volatile conditions in the trading environment. Within Asia, monetary stimulus continues to be a main theme as global events weigh in on investor sentiment. The fallout from Brexit; though largely contained for the moment, and the US Federal Reserve’s unconfident march towards policy normalisation will be much watched for as 2016 draws to a close.
Eurekahedge’s Asian hedge funds infographic sums up the industry as at September 2016. Find out more about Asian 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.
Ivan Popovic is a founding partner of Tolomeo Capital and serves as the company’s Managing Partner. At Tolomeo Capital, Ivan oversees the day-to-day running of the business.
Nicolas Mirjolet is a founding partner and the Chief Investment Officer (CIO) of Tolomeo Capital. In this function, he is responsible for portfolio management and the daily trading operations of Tolomeo’s investment products.
One of the biggest challenges facing Shariah compliant asset managers in today’s wealth management industry is not being allowed to sell short. In this article, Najla Al Shirawi takes a look at some Shariah compliant contracts and the practical implications in using them to replicate a conventional short sale.
The European Securities and Markets Authority (ESMA) published on 19 July 2016 its final advice to the European Commission (the Commission) on the extension of the marketing passport under the Alternative Investment Fund Managers Directive (AIFMD) to 12 non-EEA countries, including the United States. This note is intended to highlight ESMA’s advice to the Commission and set out the steps firms would need to consider when applying for a third country passport.