The benchmark Eurekahedge Hedge Fund Index was up 0.87% in January, while the MSCI World Index was up 1.49% over the month. Total assets under management increased by US$2.49 billion during the month as the sector witnessed performance-based increase of US$1.29 billion while registering net asset inflows of US$1.19 billion. The total size of the industry now stands at US$ 2.23 trillion.
The Eurekahedge Hedge Fund Index was up 0.87% in January while underlying markets as represented by the MSCI World Index gained 1.49% over the same period. Among regional mandates, Latin American managers led the table, up 3.73% during the month followed by Asia ex-Japan managers who increased by 1.93%. Across strategies, event driven hedge funds led the table with gains of 2.02% followed by long/short equities hedge funds which increased by 1.65%.
Hedge funds started the year on a positive note, up 0.87% during the month of January. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 1.49% over the same period. Among regional mandates, Latin American hedge fund managers topped the tables, gaining 3.73% while event driven managers posted the best returns, up 2.02% among strategic mandates.
Equity focused hedge fund strategies have seen their assets under management (AUM) grow from US$460.2 billion since end-2009 to US$778.0 billion as of January 2017 through a combination of performance-based gains and investor allocations over the years. Having recorded six consecutive years of asset growth between 2010 to 2015, long/short equity hedge fund AUM contracted for the first time in 2016, declining by 2.56% on the back of steep investor redemptions totalling US$29.1 billion. Performance-based gains were the lowest on record in the last five years following losses in 2011. While 2017 has started on a positive note, with assets for long/short equity hedge funds approaching the US$800 billion mark, the year holds much uncertainty in store.
Absolute return funds have had an impressive year in 2016, gaining 7.61%, well ahead of underlying markets and hedge fund peers which were up 7.33% and 4.46% over the same period respectively. Major global equity markets have ended the year in positive territory, supporting the performance of absolute return managers. Among regional mandates, North American absolute return managers topped the table in 2016, gaining 13.70% followed by their emerging markets mandated absolute return peers which gained 9.41% over the same period.
Absolute return funds have had an impressive year in 2016, gaining 7.61%, well ahead of underlying markets and hedge fund peers which were up 7.33% and 4.46% over the same period respectively. Major global equity markets have ended the year in positive territory, supporting the performance of absolute return managers. Among regional mandates, North American absolute return managers topped the table in 2016, gaining 13.70% followed by their emerging markets mandated absolute return peers which gained 9.41% over the same period. Across strategic mandates, value-investing managers gained 13.16% followed by bottom-up investing managers with gains of 8.00% for the year.
The Islamic finance industry is a niche market predominantly serving the needs of the world’s Muslim population. Products marketed under the umbrella of Islamic finance comply with a different investment philosophy as opposed to traditional investment philosophy which the rest of the world are familiar with. Under a Shariah-compliant framework, transactions which are considered to be unethical under Islamic law are prohibited and instead, fund managers invest in products which are compliant with Islamic guidelines. Islamic financial products are accessible to all investors, some of whom choose to allocate into Islamic funds for purposes of portfolio diversification or their preference in investing in products which deemed as socially responsible. In recent years, Islamic finance has been catching on with traditional finance institutions as international banks have expanded into providing Islamic finance services. As the use of derivatives, options and futures are deemed to be speculati
Maciej Wisniewski is the Founder and Fund Manager of Macromoney and has full oversight of all company operations. Maciej has 20 years of experience in investments management and in successfully setting up investment funds.
Held on 27 May 2016, a turnout of 300 guests gathered for the 13th Eurekahedge Asian Hedge Fund Awards ceremony to commemorate the 88 top performing Asian hedge funds of 2015 which saw familiar friends and new faces.
The benchmark Eurekahedge Hedge Fund Index was up 1.03% in December, while the MSCI World Index was up 2.38% over the month. Total assets under management increased by US$4.62 billion during the month as the sector witnessed performance-based gains of US$12.24 billion while registering net asset outflows of US$7.62 billion. The total size of the industry now stands at US$2.23 trillion.
The Eurekahedge Hedge Fund Index grew 1.03% in December while underlying markets as represented by the MSCI World Index were up 2.38% over the same period. Among regional mandates, North American managers led the table, up 1.22% during the month followed by European managers with 1.07%. Across strategies, event driven hedge funds were in the lead with 1.65% gains followed by macro hedge funds with 1.32%.
Hedge funds gained 1.03% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as the Trump-driven reflation theme buoyed markets in a somewhat ‘honeymoon’ period post-election. The S&P 500 Index gained 1.82% during the month, with the DJIA also up 3.34%.
Quantitative hedge fund strategies have received considerable interest from investors over the last decade. The application of growing computing power and the availability of big data has enabled these systematic trading models to capitalise on market inefficiencies that were otherwise difficult to identify or harvest given the implied trading costs. However, this growth has met with some headwinds on two key accounts; firstly, trading models built using back-tests on historical data have often failed to deliver good returns in real time (as previously identified trends have broken down), and secondly, the diffusion of similar quant models which has led to crowding in the space and consequently depressed the returns from such strategies.
2016 has been quite a nerve-wrecking year as the global hedge fund industry anticipated and responded to a string of unexpected events. As such, market jitters were very much present for investors as the results of two major events which had happened - Brexit and the US Presidential Elections, had caught the world by surprise. The global hedge fund industry faced steep redemption pressure from investors this year, with total net outflows coming in at US$28.2 billion. On the other hand, managers posted good performance-based gains, up US$17.8 billion over the same period.
Eurekahedge’s global hedge funds infographic sums up the industry as at January 2017. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size, head office locations and the best and worst performances of the year.
New Ocean Capital Management Limited is a Bermuda-based asset manager with expertise investing in reinsurance risk products. New Ocean is focused on providing investors with risk-adjusted returns in the insurance and reinsurance convergence market. Chris McKeown has 30 years of experience in the reinsurance industry, including six years managing a traditional reinsurance portfolio (ACE Tempest Re), five years actively managing capital invested in alternative reinsurance risk structures (CIG Re/New Castle Re). Mr. McKeown also spent 15 years in the insurance brokerage business, in both business production and senior management roles (Guy Carpenter).