News & Events

Asset Flows Update

October 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index was down 0.06% in September while underlying markets as represented by the MSCI World Index gained 0.07% over the same period. Asia focused strategies saw yet another month of decline as recovery in the US coupled with concerns over the US China trade war kept the pressure up on Asian markets with underlying Greater China mandates suffering steep losses. Across strategies, distressed debt, fixed income and arbitrage hedge funds led the table with gains of 1.84%, 0.70% and 0.29% respectively.

Hedge Fund Performance Commentary

October 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index ended the month down 0.06%, trailing closely behind global equity markets as represented by the MSCI AC World Index (Local) which edged 0.07% higher in September. Roughly half of the hedge fund managers tracked by Eurekahedge managed to generate positive returns over the month. On a year-to-date basis, the Eurekahedge Hedge Fund Index was up 0.26% as of September 2018, with 11% of the constituent funds generating double-digit returns over the first three quarters of the year

European Investor Perspectives – Geneva 2018

October 2018 | Eurekahedge


Altinvestor Europe 2018 is Eurekahedge’s second European asset owners’ event and the fourth of its kind across Europe and APAC regions, delivering exclusive insights from family offices as well as institutional asset owners on exploring alternative assets and optimising portfolio returns. The event is aimed at facilitating a private environment for candid discussions between investors and to serve as a melting pot of ideas connecting Europe’s leading institutional investors under one roof.

2018 Key Trends in North American Hedge Funds

October 2018 | Eurekahedge


North American hedge funds were up 3.39% as of August 2018 year-to-date, outperforming their peers focusing on other regions, owing to the robust economy of the United States which was supported by the Trump administration’s tax cut policy. The strong economy led the Federal Reserve to tighten their monetary policy by gradually increasing their short-term interest rates to contain the low unemployment rate, stabilise inflation, and avoid overheating the economy. The rate hikes made the US bond market attractive to investors due to the rising bond yields, causing a massive equity market selloff in early February this year. The North American equity markets have since recovered, boosted by strong corporate earnings season, which saw more than 80% of the large-cap companies comprising the S&P 500 index beating Q2 analyst estimates.

North American Hedge Funds Infographic October 2018

October 2018 | Eurekahedge


Eurekahedge’s North American hedge funds infographic sums up the industry as at October 2018. Find out more about North American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Interview with Alain Groshens, CEO at SystematicEdge

October 2018 | Eurekahedge


Alain Groshens is the co-founder, CEO, Head of Portfolio Management and Responsible Officer at SystematicEdge. For the past 25 years, Alain has been directly in charge of multi-asset portfolio management and head of trading divisions for major European Investment Banks (Societe Generale, Commerzbank & Natixis), accountable for generating returns and managing risks. As Global Head of Trading, Alain was in charge of 50 traders across the globe, managing multi-asset portfolios totaling up to 30 billion euros of notional. Alain spent most of his career in Asia and was based in Paris, London, Tokyo and Hong Kong.

Brexit Update: UK Provides More Details on its Proposed Temporary Permissions Regime

October 2018 | John Verwey and Amar Unadkat, Proskauer Rose LLP


On 29 March 2019, the UK is set to leave the EU (a process most commonly referred to as "Brexit"). The UK and EU are currently in negotiations to agree upon a transitional period which is proposed to run from 29 March 2019 through to 31 December 2020. Under the terms of the proposed transitional agreement, the UK would continue to be treated as part of the EU's single market in financial services, meaning that UK and EU firms would continue to have access to their respective markets on current terms and firms will be able to trade on the same terms as now until the end of the transitional period. Financial services passporting rights would continue to apply, therefore EU firms operating in the UK, and UK firms operating in the EU, would be able to continue to undertake regulated investment activities, either by means of passporting rights or under other relevant EU frameworks.

Guide to Opportunity Zones: How Taxpayers Can Achieve Capital Gains Tax Benefits and Support Enterprise in Underserved Communities

October 2018 | Pamela V. Rothenberg and Mark Newberg, Womble Bond Dickison LLP


Opportunity Zones are a compelling and powerful new tool for investors, asset owners, asset managers and communities that can mobilise capital for economic development in underserved communities, yielding good job creation, affordable and workforce housing development, community improvement and economic growth.

Luxembourg investment fund managers: regulatory clarifications as to approval and organisation requirements

October 2018 | Laure Mersch, Marc Meyers, Max Welbes and Thibaut Partsch, Loyens & Loeff


The CSSF issued on 23 August 2018 a new circular 18/698 regarding the authorisation and organisation of Luxembourg investment fund managers (the Circular). This Circular entered into force with immediate effect and replaced and superseded the CSSF circular 12/546

Asset Flows Update

September 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index was up a flat 0.09% in August while underlying markets as represented by the MSCI World Index gained 1.06% over the same period. Asia focused strategies saw yet another month of decline as recovery in the US coupled with concerns over the US China trade war kept the pressure up on Asian markets with underlying Greater China mandates suffering steep losses. Across strategies, distressed debt, CTA/managed futures and relative value hedge funds led the table with gains of 1.52%, 1.05% and 0.58% respectively.

Hedge Fund Performance Commentary

September 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index ended the month almost flat, gaining 0.09% with gains posted by North American mandated funds offset by losses suffered by managers focusing on Europe, Asia and Latin America. Roughly 28% of the hedge fund managers tracked by Eurekahedge managed to outperform the underlying global equity markets as represented by the MSCI AC World Index (Local) which gained 1.06% over the month. On a year-to-date basis, the Eurekahedge Hedge Fund Index was up 0.45% as of August 2018, with 10% of the constituent funds generating double-digit returns over the first eight months of the year.

Crypto-currencies: the future, or just a speculative bubble?

September 2018 | Eurekahedge


Crypto-currency funds dominated the hedge fund performance league tables back in 2017, thanks largely in part to the gravity defying price of Bitcoin (BTC), Ethereum (ETH), and other major crypto-currencies. The Eurekahedge Crypto-Currency Hedge Fund Index returned 1708.50% throughout the year, outperforming the global hedge fund industry average performance by over two hundredfold. While opinions around the future of crypto-currency became increasingly polarized, the enviable price appreciation continued to attract actively managed funds investing in crypto-currencies.

2018 Key Trends in Asian Hedge Funds

September 2018 | Eurekahedge


The Eurekahedge Asian Hedge Fund Index was down 1.57% year-to-date, and ended up as the only major regional mandate within the Eurekahedge database that was in negative territory over the first seven months of 2018. Asian hedge funds traded under the pressure of the escalating US-China trade war. The United States president Donald Trump officially fired the first shot in the trade war by imposing a 25% tariff to US$34 billion of imported Chinese goods on July 6, 2018 in response to China’s alleged unfair trade practices. The move resulted in China’s retaliatory tariff of the same magnitude on the US agriculture products, which took effect on the same date. After the first tranche of the US and China trade tariffs, the US president proposed another 25% tariff on US$200 billion of imports and further escalated the trade friction between the two largest economies in the world. China’s two mainland stock exchanges continued to slump since the beginning of the year as the impact of the tari

Asian Hedge Funds Infographic September 2018

September 2018 | Eurekahedge


Eurekahedge’s Asian hedge funds infographic sums up the industry as at September 2018. Find out more about Asian hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Hong Kong Regulator Finds a Back Door to Fund Regulation

September 2018 | Greg Heaton, Timothy Loh LLP


While retail funds must be authorized by the Securities and Futures Commission (“SFC”) before distribution in Hong Kong, the SFC has no authority to regulate private funds. Unable to touch these funds directly, the SFC has instead imposed new regulatory requirements on licensed asset managers, financial advisers and fund distributors, through amendments to the Fund Manager Code of Conduct (“FMCC”) and the Code of Conduct for Persons Licensed by or Registered with the SFC (“Code of Conduct”).

Asset Flows Update

August 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 0.41% in July while underlying markets as represented by the MSCI World Index gained 2.59% over the same period. Regional mandates with the exception of underlying Asia focused hedge funds ended the month in the green. Asia focused strategies saw yet another month of decline as recovery in the US coupled with concerns over the US China trade war kept the pressure up on Asian markets. Across strategies, distressed debt and fixed income hedge funds led the table with gains of 0.76% each whilst CTA/managed futures hedge funds posted yet another month of losses.

Hedge Fund Performance Commentary

August 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index ended the month of July up 0.41% as North American and European equity markets enjoyed the boost from strong second quarter earnings season, which somewhat mitigated losses incurred by the global trade friction. Roughly 13% of hedge fund managers tracked by Eurekahedge managed to outperform the underlying global equity markets as represented by the MSCI AC World Index (Local) which gained 2.59% over the month. On a year-to-date basis, the Eurekahedge Hedge Fund Index was up 0.43% as of July 2018.

The consistently consistent: trade finance hedge funds maintain their winning edge amidst the trade war

August 2018 | Eurekahedge


Despite the escalation of the ongoing trade conflict between the US and China, trade finance hedge funds successfully traded their way around this challenge over the past few months. The Eurekahedge Trade Finance Hedge Fund Index has not spent a single month in the red since the year started, and has returned 3.51% as of July 2018 year-to-date, ahead of hedge fund managers utilising fixed income strategies as represented by the Eurekahedge Fixed Income Hedge Fund Index which gained 1.16% over the same period. The custom index, an equal weighted index composite of 26 unique trade finance hedge funds tracks US$3.7 billion in assets under management (AUM) as of July 2018, a figure which has surged more than 50% since the end of 2016.

2018 Key Trends in Global Hedge Funds

August 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.02% as of June 2018 year-to-date, showing its worst 1H performance since 1999. The global economy is at risk due to the escalating tension of trade war between the US and China, which started in January 2018 when the US president Donald Trump imposed a tariff on imported solar panels and washing machines. The tension arose when president Trump imposed further tariffs on US$50 billion’s worth of Chinese goods and threatened to implement the same tariffs on an additional US$200 billion of goods imported from the world’s second largest economy. According to the International Monetary Fund chief economist Maurice Obstfeld, the ongoing trade war is a near-term threat to global growth.

Global Hedge Funds Infographic August 2018

August 2018 | Eurekahedge


Eurekahedge’s global hedge funds infographic sums up the industry as at August 2018. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Asset Flows Update

July 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index was down 0.34% in June while underlying markets as represented by the MSCI World Index declined 0.21% over the same period. Regional mandates across the board with the exception of Australia/New Zealand mandated hedge funds ended the month in the red, with emerging markets, in particular Asia-focused strategies seeing the largest declines. Across strategies, event driven hedge funds led the table with gains of 1.17% followed by relative value hedge funds which were up 0.66%.

Hedge Fund Performance Commentary

July 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index slumped 0.34% during the month of June, as managers struggled under the volatile market situation driven by the escalating US-China tariff spat over the month. The transitory ceasefire in the trade war was effectively ended when the White House announced a 25% tariff on US$50 billion of Chinese exports on June 15, which prompted China to respond in kind. Roughly 46% of the hedge fund managers tracked by Eurekahedge managed to outperform the underlying global equity markets as represented by the MSCI AC World Index (Local) which declined 0.21% over the month. The Eurekahedge Hedge Fund Index wrapped the first half of 2018 with a positive yet unremarkable return of 0.08% after spending three months in the red, a far cry from the 3.36% gain posted by the index over the first half of 2017.

The hedge fund ESG experience: the rise of conscientious and responsible alternative investing

July 2018 | Eurekahedge


Investors are increasingly beginning to incorporate ethical considerations into their investment decisions, a development which has given rise to the ESG framework over the years. Despite the implementation challenges which arise when screening investments against acceptable environmental, social and corporate governance themes, the trend towards a more conscientious approach to investment is here to stay, especially from the perspective of large institutional investors. Fund managers, for both actively and passively managed investment vehicles are balancing their quest for superior returns with the need to meet investor demand for responsible investing. Further, an understanding that such an approach to investment can translate into ‘ESG induced alpha’ for managers is further helping the cause of ethically guided investing. This article looks at the performance of funds, both long-only absolute return vehicles and hedge funds, with an active ESG investment framework and how they have

2018 Key Trends in European Hedge Funds

July 2018 | Eurekahedge


The Eurekahedge European Hedge Fund Index gained 0.56% in the first half of 2018, ahead of their global peers’ performance as indicated by the Eurekahedge Hedge Fund Index which was up 0.39% over the same period. European hedge funds returned 7.10% in 2017 on the back of the underlying equity markets’ rally throughout the year, supported by strengthening oil and commodity prices, combined with the unwinding of geopolitical risks within the region. Going into 2018, market volatilities returned and weighed down on the alternative investment industry’s performance. Regional risk outlook seemed to be tilted downward as trade concerns over the steel and aluminium tariffs imposed by the Trump administration and the uncertainties looming over Brexit deals may pose as headwinds against the European economies for the upcoming months.

2018 Key Trends in Long-Only Absolute Return Funds

July 2018 | Eurekahedge


Absolute return funds ended the year 2017 with an impressive gain of 20.44%, beating their hedge fund and fund of hedge fund peers which returned 8.19% and 7.18% respectively, by riding on the global equity market rally which propelled the MSCI AC World IMI Index (Local) to rise 17.51% throughout the year. However, market volatilities struck back in the first half of 2018, and absolute return fund managers were down 0.39% as of May 2018 year-to-date, trailing behind hedge fund managers who returned 0.39% over the same period, owing to the downside protection provided by their hedging strategies.

European Hedge Funds Infographic July 2018

July 2018 | Eurekahedge


Eurekahedge’s European hedge funds infographic sums up the industry as at July 2018. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Interview with Manuel Anguita, CFA, Co-Founder of Silver 8

July 2018 | Eurekahedge


Manuel Anguita is the co-founder of Silver 8, a US-based fund focused on financial technology. Silver 8 was the ranked in the Top 1% of hedge funds globally based on AY 2017 returns and in the Top 15 hedge funds based on annualised returns since inception (Eurekahedge). Silver 8 is one of the pioneer institutional investors in blockchain technology and digital assets.

Proposed Revisions to the Volcker Rule—Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships with, Hedge Funds and Private Equity Funds

July 2018 | Mark V. Nuccio and Gideon Blatt, Ropes & Gray


On May 30, 2018, the Federal Reserve Board issued a notice of proposed rulemaking and asked for comment on a proposed rule to simplify and tailor compliance requirements relating to the regulation implementing section 13 (commonly known as the “Volcker Rule”) of the Bank Holding Company Act (“BHC Act”) (the “Proposal”). The Proposal was developed jointly with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Commodity Futures Trading Commission (together, the “Agencies”).

Asset Flows Update

June 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.33% in May while underlying markets as represented by the MSCI World Index were up 0.84% over the same period. Among regional mandates, North American managers posted the best gains, up 1.43% during the month followed by Asia ex-Japan hedge funds which saw gains of 1.26%. Across strategies, event driven hedge funds led the table with gains of 1.69% followed by long/short equities hedge funds which were up 1.09%.

Hedge Fund Performance Commentary

June 2018 | Eurekahedge


Hedge fund managers successfully remained in the positive territory over the month of May, with the Eurekahedge Hedge Fund Index up 0.33% over the month, supported by the recovery of the global equity markets as represented by the MSCI AC World Index All Cap (Local) which gained 0.84%. Concerns over the trade war between the US and China, as well as geopolitical risks over the Korean peninsula dwindled nearing the end of the month, as the involved parties exhibited amiable dispositions. The armistice in the middle of the US-China tariff war and the results of the Trump-Kim summit held in Singapore in early June might provide a much needed relief for the East Asian equity markets which have been struggling since the start of the year.

Another Atlantic hurricane season looms over the ILS industry

June 2018 | Eurekahedge


The Eurekahedge ILS Advisers Index ended 2017 down 5.60%, breaking the streak of positive returns that lasted for five years, owing to the devastating losses incurred during the Atlantic hurricane season of 2017. The index, which tracks the performance of 34 ILS hedge funds with predominantly non-life risk exposure, declined by 8.61% in the month of September 2017 alone, as the extent of damage caused by hurricane Harvey and hurricane Irma started to come into light. Going into 2018, the index barely budged from its position as at the end of 2017, as it returned 0.07% over the first four months of 2018. Performance across fund managers were mixed, with strong primary cat bond market activities and healthy net inflows providing supports for them, while increased estimations on the losses induced by last year’s Atlantic hurricanes and California wildfire counteracted the gains. However, above-average activity forecasts for the 2018 Atlantic hurricane season may put pressure on ILS fund m

Asset Flows Update

May 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.55% in April while underlying markets as represented by the MSCI World Index was up 1.18% over the same period. Among regional mandates, European managers posted the best gains, up 0.78% during the month followed by North American hedge funds which saw gains of 0.27%. Across strategies, distressed debt hedge funds led the table with gains of 1.12% followed by macro hedge funds with 0.84%.

Hedge Fund Performance Commentary

May 2018 | Eurekahedge


Hedge funds successfully traded their way around an overwhelming month in April and were up 0.55% while underlying markets as represented by the MSCI World Index (Local) gained 1.18% during the month. Investors' risk appetite improved in April amid waning concerns over trade war, bolstered by the ‘soft’ tone of Xi Jinping in response to US trade sanctions. Developed markets outperformed their emerging market counterparts during the month, as the latter still remained rather volatile with the region’s equity markets posting a slightly negative return during the month on the back of a strengthening US dollar and concerns over US-China trade spat. Equity markets rebounded in April with strength led by European and North American markets with mixed to flat performance across Asian equity markets. Economic data for Q1 2018 was largely encouraging albeit recovery was at a slower pace with indicators pointing towards global economic expansion. Meanwhile, 58% of the underlying constituent fund

Greater China Equity Hedge Funds: Market Volatility Strikes Back

May 2018 | Eurekahedge


Greater China equity hedge funds ended 2017 with their best annual performance on record since 2009, supported by the remarkable rally of the Chinese equity markets throughout the year. The Eurekahedge Greater China Long Short Equities Hedge Fund Index which tracks 59 Greater China focused hedge funds utilising equity strategies posted a 31.87% gain in 2017, outperforming equity hedge fund managers from the broader region, as represented by the 19.73% return generated by the Eurekahedge Asia Long Short Equities Hedge Fund Index over the same period.

2018 Key Trends in Latin American Hedge Funds

May 2018 | Eurekahedge


The Eurekahedge Latin American Hedge Fund Index was up 5.06% as of March 2018 year-to-date, narrowly outperforming the underlying equity market as represented by the MSCI EM Latin America IMI Index which gained 4.76% over the same period. Latin American hedge fund managers continued to ride on their momentum from last year’s rally despite the difficult trading situations in the first quarter of 2018 which led to the poor performance of the global hedge fund managers who lost 0.30% on average in the quarter. Robust labour market and strengthening private consumption, combined with healthy commodity exports are expected to provide support for the region’s economies, while on the other hand protectionist policies in the United States and political uncertainties induced by the upcoming elections in Brazil, Colombia and Venezuela are among the major downside risks for investors looking into Latin America.

Latin American Hedge Funds Infographic May 2018

May 2018 | Eurekahedge


Eurekahedge’s Latin American hedge funds infographic sums up the industry as at May 2018. Find out more about Latin American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Private Equity and Hedge Funds in Puerto Rico - a Welcoming Environment in the Caribbean

May 2018 | Nikos Buxeda, Manuel López-Zambrana, Camille Alvarez and Juan Carlos Feliciano, DLA Piper


Ten years ago, private equity funds and hedge funds were practically nonexistent in Puerto Rico. This has changed dramatically as the result of two main developments: the enactment of Act 185-2014, known as the Private Equity Funds Act and (ii) the influx of financial industry professionals moving to the island to take advantage of the tax benefits available under Acts 20 and 22 (for a more detailed discussion of those benefits, please see Puerto Rico's Act 20 and Act 22 – key tax benefits).

Asset Flows Update

April 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index declined 0.54% in March while underlying markets as represented by the MSCI World Index declined 2.21% over the same period. Among regional mandates, Latin American managers posted the best gains, up 0.81% while all other regional mandates languished into negative territory. Across strategies, distressed debt hedge funds led the table with gains of 5.74% followed by relative value hedge funds which were up 0.31%.

Hedge Fund Performance Commentary

April 2018 | Eurekahedge


Hedge funds registered their second consecutive month of losses since the start of the year, with the Eurekahedge Hedge Fund Index declining 0.54% in March, while still outperforming the MSCI World Index which ended the month down 2.21%. The average return of the global hedge fund was pulled into negative territory in March as choppy trading conditions across commodities, and weaker global equity performance continued to affect the trading scene. March was marked by investors’ concerns over the US and China trade war which made headlines throughout the month and negatively affected the global equity markets, most of which ended the month in the red. As of Q1 2018, hedge funds are down 0.13%, ahead of underlying markets as the MSCI World Index posted losses of 2.24%. Close to 55% of managers were in positive territory, and roughly 6% posted year-to-date returns in excess of 10% over the first quarter. Latin American managers led among regional mandates this month with their 0.81% gain,

Indian Hedge Funds: Good Returns, Mediocre Alpha?

April 2018 | Eurekahedge


Indian hedge funds outperformed their global peers by a large margin in 2017, riding on the back of the Indian equity market’s exceptional performance over the year. The Eurekahedge India Hedge Fund Index generated 28.96% return over 2017, dwarfing the 8.25% return posted by the Eurekahedge Hedge Fund Index over the same period, which also happened to be the best annual performance of the global hedge fund industry since 2013. However, most of those gains were generated through exposure toward the fast growing equity market of the country, raising the question of whether some of these hedge fund managers actually generate enough alpha for their investors to justify their management and performance fees.

2017 Overview: Key Trend in Asian Hedge Funds

April 2018 | Eurekahedge


Asian hedge funds ended 2017 with their strongest performance recorded since 2009, as reflected by the 16.94% gain posted by the Eurekahedge Asian Hedge Fund Index, which is more than double the 8.25% gain generated by their global peers represented by the Eurekahedge Hedge Fund Index over 2017. Incredible stock market rallies across the continent, especially in Greater China and India, combined with strong economic growth have greatly contributed to the performance of the hedge fund managers with exposure toward the region.

Asian Hedge Funds Infographic April 2018

April 2018 | Eurekahedge


Eurekahedge’s Asian hedge funds infographic sums up the industry as at April 2018. Find out more about Asian hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Asset Flows Update

March 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index declined 1.62% in February outperforming underlying markets as represented by the MSCI World Index which fell 3.68% over the same period. Among regional mandates, Latin American managers led the table, up 0.66% during the month while other regional mandated funds languished into negative territory. Across strategies, distressed debt hedge funds led the table with gains of 1.32% followed by arbitrage hedge funds which were up 0.53%.

Hedge Fund Performance Commentary

March 2018 | Eurekahedge


Global markets underwent a sharp and speedy correction in February which saw equity markets post steep losses as investors prepared for a faster than expected interest rate hike in the US. The average return of the global hedge fund industry was pulled into negative territory as markets experienced sharp reversals, with trend following CTA/managed futures and long/short equities strategies lagging behind the pack. Hedge funds registered their first monthly loss of the year with the Eurekahedge Hedge Fund Index down 1.62% in February as volatility levels spiked across the board and unravelled the volatility risk premium trade. Despite steep losses during the month, hedge funds have protected on the downside and managed to outperform underlying markets as the MSCI AC World Index (Local) declined 3.68% in February.

Billion Dollar Systematic Macro Hedge Funds Lose Close to 5% in February

March 2018 | Eurekahedge


This piece looks at the performance of CTA/managed futures hedge funds and its various sub-groups which have come under pressure during the difficult market environment of February. We conclude by looking at the returns for the industry heavy weight systematic macro hedge funds overseeing assets in excess of US$1 billion which recorded steep monthly losses in February declining 4.77%. In contrast to popular news insinuating that the recent market melt-down was the doing of a handful of AI hedge fund managers which recorded their worst monthly loss on record, it seems that the major casualties lie somewhere elsewhere.

2017 Overview: Key Trend in North American Hedge Funds

March 2018 | Eurekahedge


The North American hedge fund industry grew by US$136.4 billion over 2017, owing to the strong performance of hedge fund managers, as indicated by the 8.60% gain posted by the Eurekahedge North American Hedge Fund Index over the year, which is its strongest performance since 2013. Thanks to the strong equity market performance around the globe, hedge funds with high long exposure to equities enjoyed the benefits of the record breaking equity market rallies. Despite falling behind their peers from Latin America and Asia, North American hedge funds kicked off 2018 with a decent performance, gaining 1.54% in January. Long/short equities funds topped the chart among strategic mandates with their 2.04% gain over the first month of 2018.

North American Hedge Funds Infographic March 2018

March 2018 | Eurekahedge


Eurekahedge’s North American hedge funds infographic sums up the industry as at March 2018. Find out more about North American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Independent Directors on Hedge Fund and Private Equity Boards - The Cayman Trend

March 2018 | Joanne Huckle, Ogier


It has become an established industry norm to see independent directors appointed to the boards of offshore hedge funds. It is no longer a 'check box exercise' to confirm independent directors have been appointed. Institutional investors are increasingly concerned about the composition of the board, the experience and skill set of its members and the day to day relationship between both the board members themselves and the board and the investment manager.

Asset Flows Update

February 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 2.20% in January while underlying markets as represented by the MSCI World Index gained 3.78% over the same period. Among regional mandates, Latin American managers led the table, up 4.47% during the month followed by Asia ex-Japan managers who were up 3.72%. Across strategies, CTA/managed futures hedge funds led the table with gains of 3.54% followed by long/short equities hedge funds which were up 2.37%.

Hedge Fund Performance Commentary

February 2018 | Eurekahedge


January was a happy start to the year for hedge funds, with the Eurekahedge Hedge Fund Index up 2.20% in January. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 3.78% over the same period. As the global risk on mode continues into January, trend following managers were positioned in good stead with holdings into equities and oil among performance contributors.

Artificial Intelligence: The New Frontier for Hedge Funds (2/2)

February 2018 | Eurekahedge


This piece revisits the performance of hedge funds that utilise artificial intelligence and machine learning theory in their trading process, focusing on the overall risk-return profile of artificial intelligence (AI) hedge funds as captured by the Eurekahedge AI Hedge Fund Index in comparison to traditional quants, equity-hedge strategies and the average global hedge fund.

2017 Overview: Key Trends in Islamic Funds

February 2018 | Eurekahedge


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.

2018 Key Trends in UCITS Hedge Funds

February 2018 | Eurekahedge


Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, as UCITS embodied by strong regulation resulting to a high level of investors protection with certain restrictions such as liquidity of the underlying assets and leverage caps to provide added transparency to investors.

UCITS Hedge Funds Infographic February 2018

February 2018 | Eurekahedge


Eurekahedge’s UCITS hedge funds infographic sums up the industry as at February 2018. Find out more about UCITS hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Asset Flows Update

January 2018 | Eurekahedge


Hedge funds edged higher in the final month of the year, with the Eurekahedge Hedge Fund Index gaining 0.86% in December while underlying markets as represented by the MSCI World Index was up 1.19% over the same period. Among regional mandates, Latin American managers led the table, up 2.50% during the month followed by Asia ex-Japan managers who were up 1.41%. Across strategies, event driven hedge funds led the table in December with gains of 1.57% followed by multi-strategy hedge funds which were up 1.31%.

Hedge Fund Performance Commentary

January 2018 | Eurekahedge


2017 ended positively with much pomp and was a strong year for global markets. Hedge funds closed the final month of the year in positive territory with the Eurekahedge Hedge Fund Index up 0.86% in December while the MSCI World Index finished the month up 1.19%. For 2017 as a whole, hedge funds were up 8.25%, while underlying markets as represented by the MSCI World Index returned 17.55% over the same period.

Eurekahedge European Investor Perspectives – Series 1 of 2

January 2018 | Eurekahedge


Altinvestor Europe 2017 took off with a powerful opening presentation from a highly experienced pension executive presenting on how pension funds could secure long term success through collaboration with peers and asset managers and taking a more active and innovative approach to pension fund investment management.

2017 Overview: Key Trends in Global Hedge Funds

January 2018 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 7.32% as of November 2017 year-to-date, and is on track to post 12 consecutive months of positive gains in an annual year for the first time since 1999. Total assets managed by the global hedge fund industry currently stands at US$2413.0 billion, up US$188.2 billion over the year, which is the highest annual growth recorded since the end of 2013.

Global Hedge Funds Infographic January 2018

January 2018 | Eurekahedge


Eurekahedge’s global hedge funds infographic sums up the industry as at January 2018. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Asset Flows Update

December 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.32% in November while underlying markets as represented by the MSCI World Index was up 1.16% over the same period. Among regional mandates, Asia ex-Japan managers posted the best gains, up 1.53% during the month followed by Japanese and North American hedge funds seeing gains of 1.06% and 0.86% respectively. Across strategies, relative value hedge funds led the table with returns of 0.89% followed by long/short equities and multi-strategy hedge funds which were up 0.75% and 0.22% respectively, the only two strategies who posted 12 consecutive months of gains in 2017 as global equity markets continue to rally throughout the year.

Hedge Fund Performance Commentary

December 2017 | Eurekahedge


Hedge funds were up 0.32% during the month of November, with 2017 year-to-date returns coming in at 7.27%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 1.16% in November with its 2017 year-to-date returns coming in at 16.17%. Roughly 76% of underlying constituent funds for the Eurekahedge Hedge Fund Index were in positive territory this month, with majority of them being long/short equities mandated. Equity markets continued to perform well this month with strength led by US and emerging Asian markets. Encouraging macroeconomic data from US and Japan buoyed market sentiment with growth in manufacturing activity adding to much optimism.

Hedge Fund Round Up 2017

December 2017 | Eurekahedge


Early estimates put the Eurekahedge Hedge Fund Index return at 7.81% by the end of 2017, and hedge funds are on track to post twelve consecutive positive months in a year for the first time since 1999.

2017 Key Trends in European Hedge Funds

December 2017 | Eurekahedge


The Eurekahedge European Hedge Fund Index gained 6.91% in 2017 year-to-date, slightly behind their global peers’ performance as indicated by the Eurekahedge Hedge Fund Index which gained 6.93% over the same period. Hedge fund managers have been able to capture a portion of the underlying market’s rally as European economies recover over the year. Strengthening oil and commodity prices, combined with the unwinding of geopolitical risks will continue to support the region’s growth in 2018. The hedge fund industry is expected to benefit from the strong market performance of the region over the next year.

European Hedge Funds Infographic December 2017

December 2017 | Eurekahedge


Eurekahedge’s European hedge funds infographic sums up the industry as at December 2017. Find out more about European hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Asset Flows Update

November 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 1.28% in October while underlying markets as represented by the MSCI World Index gained 2.56% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 2.82% during the month followed by Japanese managers who were up 1.77%. Across strategies, CTA/managed futures hedge funds led the table with gains of 2.66% followed by macro hedge funds which were up 1.72%.

Hedge Fund Performance Commentary

November 2017 | Eurekahedge


Hedge funds were up 1.28% during the month of October, with 2017 year-to-date returns coming in at 6.99%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.56% in October with its 2017 year-to-date returns at 14.84%. Roughly 77% of the underlying constituent hedge funds for the Eurekahedge Hedge Fund Index were in positive territory this month thanks to a broad-based rally in global equity markets and an improving investor risk appetite. Asia ex-Japan managers led the performance among regional mandates this month, up 2.82%, while CTA/managed futures managers topped the table across strategies gaining 2.66% over the same period.

Actively Managed Crypto-Currency Strategies

November 2017 | Eurekahedge


Crypto-currency funds continue to dominate hedge fund performance league tables’ thanks largely in part to the gravity defying price of bitcoins. In fact since we first published an index tracking the performance of crypto-currency investing hedge funds earlier this year, the price of bitcoin, the most liquid and the shiniest of all crypto-currencies has almost quadrupled. While opinions around the future of crypto-currency have become increasingly polarized, the enviable price appreciation continues to attract actively managed funds towards investments in crypto-currencies.

2017 Key Trends in Latin American Hedge Funds

November 2017 | Eurekahedge


The Eurekahedge Latin American Hedge Funds Index gained 14.16% as of September 2017 year-to-date, while MSCI EM Latin America IMI Index posted 18.73% over the same period. Latin American hedge funds still outperformed their European and North American counterparts by a sizeable margin and remain attractive to investors in 2017, as indicated by the 2017 year-to-date investor inflows which stand just above the US$6 billion mark, bringing the cumulative AUM to match the previous 2013 year end peak at US$60.3 billion.

Latin American Hedge Funds Infographic November 2017

November 2017 | Eurekahedge


Eurekahedge’s Latin American hedge funds infographic sums up the industry as at November 2017. Find out more about Latin American hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Interview with Niklaus Hilti, CEO and CIO of Credit Suisse Insurance Linked Strategies Ltd

November 2017 | Eurekahedge


Niklaus Hilti is the Chief Executive Officer and Chief Investment Officer of Credit Suisse Insurance Linked Strategies Ltd., which manages a number of funds focused on insurance linked investments.

Asset Flows Update

October 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.42% in September1 while underlying markets as represented by the MSCI World Index2 were up 2.17% over the same period. Among regional mandates, Japanese managers posted the best gains with 1.72% during the month followed by Asia ex-Japan and Latin American hedge funds with returns of 1.25% and 1.15% respectively. Across strategies, long/short equity hedge funds led the table with gains of 1.46% followed by event driven hedge funds, up 0.80%.

Hurricane Season Takes Toll on ILS Managers

October 2017 | Eurekahedge


After 5 consecutive years of positive returns, hedge funds with exposure to catastrophe bonds or Cat bonds for short, are on track to post their first year of losses as the full extent of damages from Hurricane Harvey, Irma and Maria come to light. An index of such funds tracked by Eurekahedge who explicitly allocate to insurance linked investments and have at least 70% of their portfolio invested in non-life risk – the Eurekahedge ILS Advisers Hedge Fund Index was down 0.33% in August and 5.46% in September, bringing the year-to-date return into negative territory with a loss of 3.69%. This comes after ILS hedge funds delivered compound returns of 15.60% versus 12.21% for the average hedge fund in the three year period ending December 2016.

2017 Key Trends in North American Hedge Funds

October 2017 | Eurekahedge


Assets for the North American hedge fund industry grew by US$68.5 billion through 2017 September year-to-date, with the majority of the growth being contributed by a resurgence in investor inflows into the industry. Managers posted performance based gains of US$22.0 billion in 2017, while the Eurekahedge North American Hedge Fund Index was up 3.23% over the same period. Event Driven mandated hedge funds topped the performance table across strategic mandates returning 4.56% in 2017 thus far. Among geographic mandates, fund managers with exposure to Asia Pacific posted the best 2017 year-to-date performance by gaining 13.83%.

North American Hedge Funds Infographic October 2017

October 2017 | Eurekahedge


Eurekahedge’s North American hedge funds infographic sums up the industry as at October 2017. Find out more about North American hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Interview with Niklaus Hilti, CEO and CIO of Credit Suisse Insurance Linked Strategies Ltd

October 2017 | Eurekahedge


Credit Suisse Insurance Linked Strategies (CSILS) team has one of the longest track records in the ILS space dating back to 2003 when members of our team first managed ILS funds at Bank Leu, a former Credit Suisse Group subsidiary.

Interview with Andrew Jackson, Managing Director, HSBC Global Asset Management

October 2017 | Eurekahedge


HSBC Global Asset Management had approximately $10bn of Structured Credit / ABS under management. The team is one of the largest in the industry, with 14 dedicated specialists whose sole focus is structured credit research and client investment.

Asset Flows Update

September 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.73% in August while underlying markets as represented by the MSCI World Index, were up 0.15% over the same period. Among regional mandates, Latin American managers led the table, up 3.26% during the month followed by Asia ex-Japan managers who were up 1.50%. Across strategies, CTA/managed futures hedge funds led the table with gains of 1.24% followed by macro hedge funds which were up 1.04%.

2017 Key Trends in Asian Hedge Funds

September 2017 | Eurekahedge


The Asian hedge fund industry has rebounded strongly in 2017, with managers running Asian mandates on track to outperform their global peers – Asia mandated hedge funds are up 9.86% relative to gains of 4.42% posted by the average global hedge fund. Investor appetite for the region has also picked up, with US$5.6 billion of net investor flows during the year as managers recorded US$6.7 billion in performance-based gains. Underlying Asia ex-Japan mandates have posted stellar returns, up 12.48% year-to-date helped by strong performance of underlying Greater China and India focused managers which are up 17.39% and 19.69% respectively for the year. Japanese hedge funds have also posted strong gains, and led on a year-to-date basis among developed market mandates with gains of 5.93%, while their North American and European peers gained 3.30% and 4.36% respectively.

Asian Hedge Funds Infographic September 2017

September 2017 | Eurekahedge


Eurekahedge’s Asian hedge funds infographic sums up the industry as at September 2017. Find out more about Asian hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

US Equity Hedge Funds Gain on Trump Boost

September 2017 | Eurekahedge


November 2016, what many thought was unthinkable became a reality when Donald Trump assumed power in the United States. His unpredictability and outspokenness had already spooked markets in the lead up to the election, but what has happened since has been quite remarkable in its own right. Markets, which once feared the idea of a Trump presidency embraced it whole-heartedly, and what President Trump had once called ‘a big, fat, ugly bubble’ got a new lease of life. The rhetoric was toned down and the handshakes were tempered as the prospect of a renewed fiscal stimulus coupled with economic de-regulation set about trying to woo markets. While little has materialized save a deadlock on Capitol Hill, markets have risen to new highs.

Asset Flows Update

August 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index grew 0.88% in July while underlying markets, as represented by the MSCI World Index, gained 1.64% over the same period. Among regional mandates, Latin American managers led the table, up 3.68% during the month followed by Asia ex-Japan managers who were up 2.45%. Across strategies, long/short equities hedge funds led the table with gains of 1.15% followed by CTA/managed futures hedge funds which were up 1.08%.

The Hedge Fund ESG Experience: A Growing Conscience for Absolute Returns

August 2017 | Eurekahedge


Investors are increasingly beginning to incorporate ethical considerations into their investment decisions, a development which has given rise to the environmental, social, governance (ESG) framework over the years. Despite the implementation challenges which arise when screening investments against acceptable environmental, social and corporate governance themes, the trend towards a more conscientious approach to investment is here to stay, especially from the perspective of large institutional investors.

2017 Key Trends in Global Hedge Funds

August 2017 | Eurekahedge


The global hedge fund industry is on track to post a solid recovery in 2017as underlying markets trend upwards against the backdrop of subdued volatility in asset prices. The Trump presidency which was expected to spook market sentiment has been surprisingly constrained so far with regards to delivering on the campaign agenda, in particular policies pertaining to global trade. Rather, expectations of a fiscal expansion in the US lend support to markets early during the year while his first tour as President of the United States helped calm nerves overseas, barring the odd-handshakes and other presidential antics. Risk appetite generally improved during the year, with equity long bias strategies posting double digit gains whilst returns for macro and systematic managed futures strategies languished in a low volatility regime.

2017 Key Trends in Emerging Market Hedge Funds

August 2017 | Eurekahedge


Emerging market mandated hedge funds have delivered exceptionally strong gains this year – the asset weighted US dollar denominated Mizuho-Eurekahedge Emerging Market Index is up 7.59% for the year, with underlying equity long/short hedge funds for the index gaining 9.75% in the seven months through July. Hedge funds running dedicated exposure to India, China and Latin America have all posted double-digit gains year-to-date and have been the key contributors to the stellar returns posted by emerging market mandated hedge funds.

Global Hedge Funds Infographic August 2017

August 2017 | Eurekahedge


Eurekahedge’s global hedge funds infographic sums up the industry as at August 2017. Find out more about global hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Asset Flows Update

July 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index down 0.07% in June while underlying markets as represented by the MSCI World Index gained 0.18% over the same period. Among regional mandates, Asia ex-Japan managers led the table with growth of 1.29% during the month followed by Japanese managers who were up 1.05%. Across strategies, event driven hedge funds led the table with gains of 0.79% followed by relative value hedge funds which were up 0.61%.

China A-Share Investing Hedge Funds Strategy Profile

July 2017 | Eurekahedge


A revival appears to be underway for China investing mandates in 2017 following disappointing returns last year. The recent decision by MSCI to include Chinese A Shares in its broader Emerging Market Indices is likely to support this trend, though exposure through long-only type vehicles to underlying markets could take investors for a ride given the inherent volatility. This piece looks at the performance of China A-Share investing hedge funds and how they have managed to ride the volatility in underlying markets over the years.

2017 Key Trends in European Hedge Funds

July 2017 | Eurekahedge


The European hedge fund industry has been gaining since the start of the year despite political uncertainty in the Eurozone area. Investor allocations into the industry stood at US$3.5 billion over the first five months of 2017, though the first two months of the year show investors’ redemptions to the tune of US$2.8 billion as concern arose over the outcome of the French presidential election results.

2017 Key Trends in UCITS Hedge Funds

July 2017 | Eurekahedge


Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, as UCITS embodied by strong regulation resulting to a high level of investors protection with certain restrictions such liquidity of the underlying assets and leverage caps to provide added transparency to investors.

European Hedge Funds Infographic July 2017

July 2017 | Eurekahedge


Eurekahedge’s European hedge funds infographic sums up the industry as at July 2017. Find out more about European hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

UCITS Hedge Funds Infographic July 2017

July 2017 | Eurekahedge


Eurekahedge’s UCITS hedge funds infographic sums up the industry as at July 2017. Find out more about Latin American hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Asset Flows Update

June 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 0.33% in May while underlying markets as represented by the MSCI World Index gained 1.09% over the same period. Among regional mandates, Japanese managers led the table, up 1.58% during the month followed by Asia ex-Japan managers who were up 0.93%. Across strategies, event driven hedge funds led the table with gains of 0.71% followed by long/short equities hedge funds with gains of 0.49%.

Crypto-Currency Funds Strategy Profile

June 2017 | Eurekahedge


Since 2013, a new breed of actively managed crypto-currency alternative funds has been coming to the fore. Initially starting off with dedicated exposure to bitcoins, these funds have now diversified across the breadth of crypto-currencies and consistently rank at the top of performance tables thanks to the skyrocketing price of crypto-currencies over the past few years.

2017 Key Trends in Latin American Hedge Funds

June 2017 | Eurekahedge


The Eurekahedge Latin American Hedge Fund Index was up 7.10% in April year-to-date underperforming underlying markets as represented by the MSCI Latin American Index which were up 8.03% over the same period. The strength of Latin American hedge fund industry has been well-supported by the recovery of commodity prices during the first four months of the year, with the Ibovespa Index up a modest of 0.65%.

Latin American Hedge Funds Infographic June 2017

June 2017 | Eurekahedge


Eurekahedge’s Latin American hedge funds infographic sums up the industry as at June 2017. Find out more about Latin American hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Asset Flows Update

May 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 0.64% in April while underlying markets as represented by the MSCI World Index gained 1.17% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 1.28% during the month followed by European managers who were up 1.10%. Across strategies, event driven hedge funds led the table with gains of 1.44% followed by long/short equities hedge funds which were up 1.05%.

Merger Arbitrage Hedge Funds Strategy Profile

May 2017 | Eurekahedge


Corporate events such as mergers and acquisitions (M&A) and company spinoffs provide opportunities for merger arbitrage hedge funds to capitalise on pricing inefficiencies prior to the completion of a transaction. Before acquisition, the price of the share of a target company is usually traded at a discounted price, creating a potential opportunity for merger arbitrageurs to reap gains once the transaction is complete. However, much of the opportunities within the merger arbitrage space lies in the health of M&A activity as well as other factors which would motivate (or de-motivate) the successful transaction of an M&A deal. For instance, the Pfizer/Allergan M&A deal was threatened by US regulatory challenges and this led to the abandonment of the deal. Other than regulatory challenges, the outlook of the global economy as well as business sentiments play an integral role in sustaining the appetite for corporate activity by conglomerates.

Global Funds of Hedge Funds Infographic May 2017

May 2017 | Eurekahedge


Eurekahedge’s global funds of hedge funds infographic sums up the industry as at May 2017. Find out more about Global funds of hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Interview with Isaac Lieberman, CEO and Founder of Aston Capital Management

May 2017 | Eurekahedge


Isaac Lieberman founded Aston Capital Management as a quantitative hedge fund in November 2013. As a veteran trader of proprietary quantitative strategies, Isaac has more than 20 years of experience trading in global FX and fixed income markets. Prior to founding ACM, Isaac was Managing Director at J.P. Morgan where he was the Head of Algorithmic Trading and the Head of Electronic FX Options Trading. Before joining J.P Morgan in 2008, Isaac was Head of the FX and Fixed Income division in the Principal Strategies Group at Bear Stearns where he worked from 1996.

Asset Flows Update

April 2017 | Eurekahedge


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%.

Man versus Machine: Quantitative Hedge Funds

April 2017 | Eurekahedge


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.

2016 Overview: Key Trends in Asian Hedge Funds

April 2017 | Eurekahedge


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.

Asian Hedge Funds Infographic April 2017

April 2017 | Eurekahedge


Eurekahedge’s Asian hedge funds infographic sums up the industry as at April 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.

Interview with Filippo Pignatti, Fund Manager at The Classic Car Fund

April 2017 | Eurekahedge


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.

Interview with Kevin Ellis, Managing Director at Horse Cove Partners

April 2017 | Eurekahedge


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.

Asset Flows Update

March 2017 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 0.97% in February while underlying markets as represented by the MSCI World Index gained 2.72% over the same period. Among regional mandates, Latin American managers led the table, up 2.75% during the month followed by Asia ex-Japan managers with 1.43%. Across strategies, distressed debt hedge funds were in the lead with 1.34% gains followed by event driven hedge funds with 1.26%.

2016 Roundup - Activist Hedge Funds

March 2017 | Eurekahedge


Activist hedge funds, a sub-strategy of event driven hedge funds, deploy shareholder activism as a key cornerstone of their investment strategy and have closer interactions with management of the companies which they invest into. Cultural differences also play a part in the adopted style of activism with Western activist hedge funds pursuing a dynamic approach, while their Asian counterparts adopt a more engagement-styled activism. This special feature takes a quick look at activist hedge funds, which have markedly outperformed their global hedge fund peers in 2016.

2016 Overview: Key Trends in North American Hedge Funds

March 2017 | Eurekahedge


Assets for the North American hedge fund industry grew by US$19.1 billion for annual year 2016, with strength led by manager performance as opposed to investor interest. Managers posted performance-based gains of US$34.0 billion in 2016, with the Eurekahedge North American Hedge Fund Index was up 7.77% over the same period, outperforming regional peers. Event driven mandated hedge funds led performance across strategic mandates, up 18.19% in 2016 followed by distressed debt and multi-strategy hedge funds which gained 12.86% and 11.17% respectively.

North American Hedge Funds Infographic March 2017

March 2017 | Eurekahedge


Eurekahedge’s North American hedge funds infographic sums up the industry as at March 2017. Find out more about North American hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Interview with Wang Qiang, CIO at Pinpoint Asset Management Limited

March 2017 | Eurekahedge


Founded in 1999, Pinpoint is an Asia-based investment management firm that serves institutional investors, pension funds, private banks, fund of funds, family offices and high net worth individuals. Pinpoint Asset Management Limited was incorporated in Hong Kong on 4 Jun 2010 and regulated by the Hong Kong Securities Futures Commission for Type 9 (asset management) activities.

Asset Flows Update

February 2017 | Eurekahedge


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%.

2016 Roundup - Equity Focused Hedge Fund Strategies

February 2017 | Eurekahedge


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.

Long-Only Absolute Return Funds Infographic February 2017

February 2017 | Eurekahedge


Eurekahedge’s long-only absolute return funds infographic sums up the industry as at February 2017. Find out more about long-only absolute return funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

2016 Overview: Key Trends in Islamic Funds

February 2017 | Eurekahedge


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

Interview with Maciej Wisniewski, Founder and Portfolio Manager at Macromoney

February 2017 | Eurekahedge


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.

Asset Flows Update

January 2017 | Eurekahedge


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 Fund Performance Commentary

January 2017 | Eurekahedge


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%.

Artificial Intelligence: The new frontier for hedge funds

January 2017 | Eurekahedge


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 Overview: Key Trends in Global Hedge Funds

January 2017 | Eurekahedge


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.

Global Hedge Funds Infographic & Top Hedge Fund Strategies January 2017

January 2017 | Eurekahedge


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.

Asset Flows Update

December 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.41% in November while underlying markets as represented by the MSCI World Index grew 2.88% over the same period. Among regional mandates, North American managers led the table, up 2.28% during November followed by Japan managers with 1.16% gains. Across strategies, event driven hedge funds led with 1.85% growth followed by distressed debt hedge funds which grew 1.69%.

Hedge Fund Performance Commentary

December 2016 | Eurekahedge


Hedge funds were up 0.41% during the month of November, with 2016 year-to-date returns coming in at 3.53%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.88% in November with its 2016 year-to-date returns at 4.88%. Roughly 56% of underlying constituent funds for the Eurekahedge Hedge Fund Index were in positive territory this month, with majority of them being long/short equities mandated. North American hedge fund managers posted the best returns among regional peers this month, with gains of 2.28% while among strategic mandates, event driven hedge funds led the tables with gains of 1.85%.

Event Driven Strategies Outshine Peers in 2016

December 2016 | Eurekahedge


Event driven and their sub-group of distressed debt hedge fund strategies account for almost 12% of the global hedge fund assets under management, standing at US$266.5 billion as of November 2016. Despite posting the best returns among hedge fund strategic mandates in 2016 (distressed debt and event driven strategies are up 11.89% and 8.15% respectively which compares with average global hedge fund gains of 3.50%), the two strategies have seen investor redemptions for most of 2016. Event driven strategies saw outflows of US$13.5 billion in 2016, while distressed debt hedge funds recorded redemptions of US$2.1 billion which compares with industry wide investor redemptions of US$28.2 billion for the year.

2016 Overview: Key Trends in European Hedge Funds

December 2016 | Eurekahedge


European hedge fund managers have had a challenging year in 2016, with redemption activity picking up for the past six consecutive months. Year-to-date investor redemptions stood at US$7.4 billion as of October 2016, a stark contrast from stronger investor allocations totalling US$32.4 billion over the same period last year.

European Hedge Funds Infographic December 2016

December 2016 | Eurekahedge


Eurekahedge’s European hedge funds infographic sums up the industry as at December 2016. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Interview with Mitchell Presnick, Director and Partner at Marco Polo Pure Asset Management Ltd

December 2016 | Eurekahedge


Mitchell Presnick is Director and Partner with Marco Polo Pure China Fund. Mr. Presnick holds an MBA (1999) from the Rutgers Graduate School of Business in Newark, New Jersey, a graduate diploma in Chinese language (1990) from Peking University in Beijing, and a BBA (1988) from James Madison University in Harrisonburg, Virginia. He is fluent and literate in Mandarin Chinese. Mitch is a prominent American business commentator in Asia and a permanent resident of Hong Kong. He brings over 28 continuous years on-site China business experience.

Asset Flows Update

November 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index declined 0.48% in October outperforming underlying markets as represented by the MSCI World Index which was down 1.38% over the same period. Among regional mandates, Latin American managers led the table, up 4.07% during the month followed by Japan managers who gained 2.28%. Across strategies, distressed debt hedge funds led the table with gains of 1.96% followed by fixed income hedge funds which were up 0.51%.

Hedge Fund Performance Commentary

November 2016 | Eurekahedge


Hedge funds witnessed their first decline in seven months, down 0.48% in October. Despite being in the red this month, hedge funds have outperformed underlying markets, with the MSCI AC World Index (Local) losing 1.38% over the same period. While the US Presidential Elections loomed in the background, markets moved in the rhythm of a series of economic data releases as well as central bank meetings this month.

CTA/Managed Futures Strategies Continue to Attract Investor Capital

November 2016 | Eurekahedge


CTA/managed futures hedge fund strategies account for almost 11% of the global hedge fund assets under management (AUM), accounting for US$250.3 billion as of October 2016. While the global hedge fund industry has seen redemptions of US$16.6 billion in 2016; the highest on record since 2009, CTA/managed futures strategies have continued to attract investor capital for the second consecutive year in a row. The strategy has seen net investor allocations of US$12.2 billion in 2016, following capital inflows of US$29.0 billion in 2015. Average index returns for the strategy have been muted over the last two years (this following their strong showing in 2014 when the Eurekahedge CTA/Managed Futures Hedge Fund Index was up 9.62%), the prospect of uncorrelated returns, both to traditional and hedge fund mandates adds much to the appeal of CTA/managed futures hedge funds in an investor’s portfolio.

2016 Key Trends in Latin American Hedge Funds

November 2016 | Eurekahedge


The US$54.9 billion Latin American hedge fund industry grew by US$0.6 billion over the past nine months. Though a modest figure, this represents the industry’s first year-to-date asset expansion since 2013. Much of this year’s asset expansion is attributed to positive performance-based figures totalling US$1.4 billion while investors redeemed US$0.8 billion from the industry.

Latin American Hedge Funds Infographic November 2016

November 2016 | Eurekahedge


Eurekahedge’s Latin American hedge funds infographic sums up the industry as at November 2016. Find out more about Latin American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

Interview with David Liebowitz, Managing Partner at Aroya Capital LP

November 2016 | Eurekahedge


David Liebowitz has been an investment professional for over 33 years. Prior to founding Aroya Capital LP, David served Bear Stearns in a number of capacities from 1983 to 2005. The common thread of his experience was his involvement in proprietary trading during his entire 22 years career at Bear – initially Risk Arbitrage and then Convertible Arbitrage for many years. Over the course of his career at Bear he managed as much as $4 billion of proprietary capital as well as $1.4 billion of client assets. In 1993 David was elected to the Board of Directors of The Bear Stearns Companies, Inc., serving as a director until 2001.

Asset Flows Update

October 2016 | Eurekahedge


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 Fund Performance Commentary

October 2016 | Eurekahedge


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 Strategies Struggle Led by Weaknesses in Europe

October 2016 | Eurekahedge


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

2016 Key Trends in North American Hedge Funds

October 2016 | Eurekahedge


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.

North American Hedge Funds Infographic October 2016

October 2016 | Eurekahedge


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.

Asset Flows Update

September 2016 | Eurekahedge


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 Fund Performance Commentary

September 2016 | Eurekahedge


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 Hedge Funds – The Dark Knights of the Industry

September 2016 | Eurekahedge


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.

2016 Key Trends in Asian Hedge Funds

September 2016 | Eurekahedge


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.

Asian Hedge Funds Infographic September 2016

September 2016 | Eurekahedge


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.

Interview with Ivan Popovic, Managing Director and Nicolas Mirjolet, Chief Investment Officer at Tolomeo Capital AG

September 2016 | Eurekahedge


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.

Asset Flows Update

August 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 1.52% in July while underlying markets as represented by the MSCI World Index gained 4.18% over the same period. Among regional mandates, Latin American managers led the table, up 4.44% during the month followed by Asia ex-Japan managers who grew 2.79%. Across strategies, relative value hedge funds led the table with gains of 2.51% followed by long/short equities hedge funds which were up 2.34%.

Hedge Fund Performance Commentary

August 2016 | Eurekahedge


Hedge funds gained for the fifth consecutive month in July, up 1.52% while underlying markets, as represented by the MSCI AC World Index (Local) gained 4.18%. Roughly 73% of the underlying constituent hedge funds for the Eurekahedge Hedge Fund Index were in positive territory this month thanks to a broad-based rally in global equity markets and an improving investor risk appetite post-Brexit. Markets were a little perturbed by a series of central bank meetings. Bund yield barely moved after the ECB meeting left current measures unchanged, signalling that investors are still anticipating another round of ECB stimulus in the coming months.

Commodity Focused Hedge Funds Outshine Peers in 2016

August 2016 | Eurekahedge


The&nbsp;<em>Eurekahedge Commodity Hedge Fund Index</em>&nbsp;is an equal-weighted index which tracks the performance of underlying hedge fund managers who invest exclusively into commodities and commodities-related instruments. In our analysis, the&nbsp;<em>Eurekahedge Commodity Hedge Fund Index</em>&nbsp;was up 0.77% in July (9.19% July year-to-date) in what turned out to be a good month for managers allocating to precious metals, energy and softs. Underlying managers reported impressive gains made from the rally in precious metals in July as gold climbed during the latter half of the month, on the back of a weakening greenback and lacklustre GDP figures coming from the US. Short positions in crude oil proved to be profitable as concerns of a sat

2016 Key Trends in Global Hedge Funds

August 2016 | Eurekahedge


The first half of 2016 was certainly eventful as financial markets anticipated and reacted to global developments. Emerging market assets performed strongly towards the second quarter of the year as oil and commodity prices showed signs of recovery. Events in the developed world have also added to heightened volatility in the markets, especially in the days leading up to the Brexit referendum with investors fleeing to safe haven assets.

Global Hedge Funds Infographic August 2016

August 2016 | Eurekahedge


Eurekahedge’s global hedge funds infographic sums up the industry as at August 2016. Find out more about global 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.

Interview with Mason Chau, Chief Investment Officer of OIL Assets International Limited

August 2016 | Eurekahedge


Mason Chau, Chief investment officer, BBA, Msc (E-commerce), CPA., FCCA, is the founder of OIL Assets International Limited. Prior to this, he has held senior position in BZW Asia Limited and HSBC Securities Limited. Mason also has extensive experience in direct investment and private equity.

Asset Flows Update

July 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 0.63% in June while underlying markets as represented by the MSCI World Index fell 1.38% over the same period. A weak global macroeconomic outlook coupled with strong headwinds in the aftermath of Brexit proved to be a challenging environment for managers.

Hedge Fund Performance Commentary

July 2016 | Eurekahedge


Hedge funds successfully traded their way around an overwhelming month in June and were up 0.63% while underlying markets as represented by the MSCI World Index lost 1.38% during the month. A number of managers had lowered their overall risk exposure in the lead up to Brexit, and were quick to reverse their positions and capitalise on winning trends that emerged subsequently such as the rally in the yen and emerging currency pairs vis a vis US dollar; and short positions in the pound which declined to historic lows.

Eurekahedge FX Hedge Fund Index Strategy Profile

July 2016 | Eurekahedge


The Eurekahedge FX Hedge Fund Index tracks the performance of dedicated currency investing hedge funds in the spot, futures and forward markets utilising both systematic and discretionary overlays and investing across all of major, minor and exotic currency pairs. The Eurekahedge FX Hedge Fund Index was up 0.10% in June in what turned out to be a volatile month for global currencies. Underlying managers reported losses on their long USD versus emerging market currency pairs’ positions in the earlier part of the month as disappointing US non-farm payroll data pushed back expectations of a summer rate hike in the US. Short positions in the Rand proved to be costly for managers as South Africa avoided an expected ratings downgrade ...

2016 Key Trends in European Hedge Funds

July 2016 | Eurekahedge


The European hedge fund industry continues to gain traction among investors despite market turbulence dominating the trading landscape since the start of the year. Investor allocations into the industry stood at US$13.4 billion over the last five months of 2016, up US$4.2 billion compared to allocations over the same period last year. Manoeuvring volatile markets has proved to be a challenge with managers posting year-to-date performance-based losses of US$6.8 billion, compared to gains of US$14.3 billion over the same period last year.

European Hedge Funds Infographic July 2016

July 2016 | Eurekahedge


Eurekahedge’s European hedge funds infographic sums up the industry as at July 2016. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size and geographic AUM, domiciles, head office locations and the best and worst performances of the year.

2016 Key Trends in UCITS Hedge Funds

July 2016 | Eurekahedge


Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, with certain restrictions such liquidity of the underlying assets and leverage caps to provide added transparency to investors.

UCITS Hedge Funds Infographic July 2016

July 2016 | Eurekahedge


Eurekahedge's UCITS hedge funds infographic sums up the industry as at July 2016. Find out more about UCITS hedge fund assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, domiciles, head office locations, performance comparison, and the best and worst performances of the year.

Asset Flows Update

June 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.40% in May while underlying markets as represented by the MSCI World Index grew by 1.28% over the same period. Among regional mandates, North American managers posted the best returns, up 1.03% during the month followed by European and Japanese hedge funds which saw gains of 1.00% each. Across strategies, distressed debt hedge funds led the tables with gains of 1.66% followed by event driven hedge funds which were up 1.29%.

Hedge Fund Performance Commentary

June 2016 | Eurekahedge


Hedge funds were up 0.40% in May while underlying markets, as represented by the MSCI World Index gained 1.28% over the same period. Managers held their ground despite tight markets in May with mid-month reversals across commodities, and weaker equity performance in developing markets affecting the trading scene. Risk appetite somewhat sustained during the month with oil prices remaining resilient going into May. Distressed debt hedge funds were a clear lead among strategic mandates, up 1.66% while North American managers led regional mandates, up 1.03%. Among profitable moves for managers were long developed markets consumer stocks, some into European consumer and information technology names.

2016 Key Trends in Latin American Hedge Funds

June 2016 | Eurekahedge


The first four months of 2016 saw some renewed investor interest into the Latin American hedge fund space. Total assets for Latin American hedge funds grew US$0.8 billion as of April 2016 year-to-date, roughly twice the level of asset growth seen over the same period last year. The Eurekahedge Latin American Long Short Equities Hedge Fund Index and Eurekahedge Latin American Multi-Strategy Hedge Fund Index were up 11.21% and 8.53% respectively as of April 2016 year-to-date. Investor optimism in the region was evident as major Latin American equity indices rallied at the start of the year. The MSCI Latin America Index was up 15.24% in 2016 year-to-date as resilient oil and commodity prices have helped in pushing up the valuations of underlying assets.

Latin American Hedge Funds Infographic June 2016

June 2016 | Eurekahedge


Eurekahedge’s Latin American hedge funds infographic sums up the industry as at June 2016. Find out more about Latin American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.

Interview with Vincent Lam, Chief Investment Officer, at VL Asset Management

June 2016 | Eurekahedge


VL Asset Management Limited was founded in 2009 in Hong Kong by veteran investor Vincent Lam and ex-lawyer Adrian Wong.  The company, being a home-grown boutique house though, has strengthened its team from two to nine members in less than seven years. Its flagship, VL Champion Fund, with a long-short equity mandate, was launched in mid-2009 and has been up and running with a loyal and steadily-growing investor base. VLAM launched an authorised fund VL China Fund in August 2015. Vincent Lam shares with Eurekahedge the fund's investment strategy.

Asset Flows Update

May 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.88% in April while underlying markets as represented by the MSCI World Index gained 0.67% over the same period. Among regional mandates, Latin American managers posted the best gains, up 3.93% during the month followed by North American hedge funds which saw gains of 1.25%. Across strategies, relative value hedge funds led the table with gains of 1.96% followed by event driven hedge funds which were up 1.34%.

Hedge Fund Performance Commentary

May 2016 | Eurekahedge


Hedge funds outperformed underlying markets in April and were up 0.88% during the month while underlying markets as represented by the MSCI World Index gained 0.67%. Emerging market managers continued to perform well during the month supported by resilient oil and commodity prices which helped to inject some investor optimism. A confluence of factors has helped oil gain some support despite ineffective talks between OPEC members while rather encouraging Chinese macro data and stimulus measures have also aided in providing a better outlook for the Chinese economy, resulting in the climb in prices across the commodity space.

Funds of Hedge Funds Infographic May 2016

May 2016 | Eurekahedge


Eurekahedge’s funds of hedge funds infographic sums up the industry as at May 2016. Find out more about funds of hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.

Interview with Cy Jacobs, Co-Founder and Fund Manager, at 36ONE Asset Management

May 2016 | Eurekahedge


36ONE Asset Management is an independent owner-managed specialist investment manager based in Johannesburg, South Africa. Our investment philosophy is to focus on fundamental analysis while using a macro overlay to understand which themes complement our fundamental approach and for risk management purposes with the aim of generating above-average real returns. We continually manage our investments in a flexible manner to reflect changing market conditions. Cy Jacobs shares with Eurekahedge the fund's investment strategy.

Derivatives and Hedging: Speculation Tools or Effective Risk Management in a Volatile Market?

May 2016 | Danial Idraki, Islamic Finance News


Derivatives and hedging are tools that remain necessities in the financial system as a way to manage risks that might arise from uncertainties and price fluctuations in the market, although it remains a contentious subject in Islamic finance due to some of the features in the instruments that invite speculative trading. Views are often split from a Shariah standpoint, given that excessive uncertainty and speculation are concepts not permissible in Shariah compliant transactions.

Asset Flows Update

April 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 1.33% in March while underlying markets as represented by the MSCI World Index declined 5.47% over the same period. Among regional mandates, Latin American managers posted the best gains, up 4.85% during the month followed by Asia ex-Japan hedge funds which saw gains of 4.78%. Across strategies, event driven hedge funds led the table with gains of 3.16% followed by distressed debt hedge funds were up 3.03% - an impressive rebound after their four-month losing streak.

Hedge Fund Performance Commentary

April 2016 | Eurekahedge


Hedge funds recovered part of their losses from earlier in the year and were up 1.33% in March as underlying markets represented by the MSCI World Index gained 5.47% in what shaped up to be a positive month for global markets. The Fed's decision to roll back further on its scheduled interest rate hikes for 2016, coupled with rising oil prices and monetary easing in China provided much need relief for the markets. As of end-Q1 2016, hedge funds are down 0.37%, ahead of underlying markets as the MSCI World Index posted losses of 1.97%.

2015 Overview: Key Trends in Global Hedge Funds

April 2016 | Eurekahedge


The world economy had a shaky start in 2016 with investors flocking to safe haven assets amid a volatile market environment. The global hedge fund industry’s asset base contracted US$20.1 billion as of February 2016 year-to-date, with performance-driven losses a main contributor to this contraction. Performance-based losses stood at US$16.6 billion in the first two months of 2016 alone, while investor outflows of US$3.5 billion were recorded. The assets under management (AUM) of the global hedge fund industry currently stand at US$2.22 trillion, managed by a total of 11390 hedge funds. Going into 2016, further easing seems to be a main theme as central bankers worldwide have largely adopted accommodative monetary policies in an attempt to re-energise the current lethargy of the world economy.

Global Hedge Funds Infographic April 2016

April 2016 | Eurekahedge


Eurekahedge’s global hedge funds infographic sums up the industry as at April 2016. Find out more about hedge fund assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.

Interview with Dr. Leung Wing Cheong, CEO and CIO of InnoFusion Capital Management Limited, for InnoFusion Asia Multi-Strategy Fund

April 2016 | Eurekahedge


InnoFusion Capital Management runs a multi-strategy fund focused in relative value/arbitrage strategies. The fund invests in a wide range of asset classes and financial products, including equities, fixed income, convertible bonds, commodities and derivatives. During the last 10 years, the fund return 14.35% per annum with very low correlation to various markets and asset classes. Dr. Leung Wing Cheong, CEO and CIO shares with Eurekahedge the fund's investment strategy.

Interview with Hyung-Kyu Choi, CEO & CIO of QUAD Capital Management

April 2016 | Eurekahedge


Hyung-Kyu Choi is the Managing Partner of Korean-based asset management firm QUAD Investment Management since January 2014. With 16 years of experience in investments, FX trading and credit analysis, Hyung-Kyu shares with us the fund's investment objective, along with his thoughts about the impact of smart watches on the industry, and display technology.

Asset Flows Update

March 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.36% in February while underlying markets as represented by the MSCI World Index declined 1.43% over the same period. Among regional mandates, Japanese managers posted the steepest loss down 3.83% during the month followed by Asia ex-Japan hedge funds which saw losses of 1.78%. Across strategies, CTA/managed futures hedge funds led the table with gains of 2.62% propped up by exposure into safe haven assets such as gold and the Bund.

Hedge Fund Performance Commentary

March 2016 | Eurekahedge


Hedge funds bounced into positive territory in February despite volatile market conditions – up 0.36% during the month, outperforming underlying markets as the MSCI World Index declined 1.43% over the same period. The global risk-on mode continued into February as investors fled to safety with yields on sovereign bonds particularly the Bund, ending lower as investors anticipate Draghi’s stimulus shots in the ECB’s coming March meeting. Over in Asia, much of the equity market weakness was led by the Japanese markets as dovish comments from Janet Yellen sent the yen appreciating mid-month.

2015 Overview: Key Trends in North American Hedge Funds

March 2016 | Eurekahedge


The North American hedge fund industry continues to grow despite muted returns in 2015 when a challenging market environment saw underlying managers post sub-zero returns in what was the worst year for managers since the lows of 2008. However, not all was doom and gloom. North American managers running Asia Pacific, broad emerging market and European mandates ended 2015 in the green, while across strategic mandate arbitrage strategies; in particular managers employing volatility based strategies post good returns.

Global Hedge Funds 2015 Overview Infographic

March 2016 | Eurekahedge


Eurekahedge’s global hedge funds 2015 overview infographic sums up the industry for the past year. Find out more about hedge fund assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.

Interview with Christopher Peck, Partner & Portfolio Manager at Maiora Asian Structured Finance Fund

March 2016 | Eurekahedge


Christopher Peck has been in the industry with 16 years of experience in Japan and Singapore and currently focuses on resources and mezzanine debt at Maiora Asset Management.

Interview with Noemi Holecz, Risk and Portfolio Manager at Colombus Investment Management

March 2016 | Eurekahedge


Noemi Holecz, a risk and portfolio manager of Loyal Explorer Fund shares how the fund stands out from competition through advanced quantitative methodologies utilised by Colombus Investment Management.

Asset Flows Update

February 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index lost 1.20% in January while underlying markets as represented by the MSCI World Index were down 5.71%. All regional mandates were down during the month as global equities faced intense sell-off pressure; much of the weakness in equity markets was led by Asian equities. Asia ex-Japan managers posted losses of 3.15% during the month followed by Japanese hedge funds which saw losses of 2.71%. Across strategies, CTA/managed futures hedge funds led the table with gains of 2.32% during the month while other strategies languished in negative territory.

Hedge Fund Performance Commentary

February 2016 | Eurekahedge


January was not a happy start to the year for hedge funds as managers witnessed a drag in performance - down 1.20% during the month, as investor panic induced strong downward pressure on equity markets leading to a sell-off and the resulting capital flight to safe havens. The MSCI World Index declined 5.71% over the same period with much of the weakness in the global equity markets being led by Asia. Indeed, all eyes were on Asia in January as developments in East Asian economies along with a tumbling oil price took centre stage and sent ripples throughout the region and beyond.

Eurekahedge 50 Index: The Year in Review and a Look Forward to 2016

February 2016 | Quantvest


The Eurekahedge 50 (EH50) index was designed to represent the exposures and experience of institutional hedge fund investors. Seeking to create a more selective benchmark reflective of diversified, institutional-quality multi-manager portfolios, Markov Processes International (MPI), in partnership with Eurekahedge, launched this unique Index in December 2014. After its first full year, the industry’s first measure of the collective performance of top hedge funds delivered better risk-adjusted returns with fewer turnovers than all-inclusive hedge fund indices.

2016 Annual Compliance Dates: SEC-Registered Investment Advisers to Private Funds

February 2016 | Elizabeth Kemery Sipes, Mark W. Weakley and Rafael E. Mendez, Bryan Cave


In 2010 the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) eliminated the private fund adviser exemption. Prior to Dodd-Frank, many managers to hedge funds and private equity funds relied on this exemption from registration as investment advisers. After Dodd-Frank, many private investment fund managers were required to register with the U.S. Securities and Exchange Commission (SEC) as investment advisers. These investment advisers are now subject to significant on-going compliance obligations and examination by the SEC.

The Coming SEC Sweep in Hedge Funds

February 2016 | Don Andrews, Venable LLP


In 2014, the SEC formed the Private Funds Unit (PFU), a multi-disciplinary task force designed to specifically address matters that had surfaced during their initial round of ‘presence examinations’ for private funds, which commenced in 2012. Since that time, much has happened. Examinations revealed material weaknesses and deficiencies among private equity firms in the areas of valuation, performance reporting, disclosure to limited partners and conflicts of interest. The staff of the SEC has commenced enforcement actions against a number of private equity firms and indicated that the industry can expect additional enforcement actions related to the above issues.

Asset Flows Update

January 2016 | Eurekahedge


The Eurekahedge Hedge Fund Index lost 0.70% in December while underlying markets as represented by the MSCI World Index were down 2.23%. The performance of regional mandates was mixed during the month with Asia ex-Japan managers leading the table with gains of 1.45% followed by Japanese managers up 0.27%. Meanwhile the performance of European managers was flat, while Latin American and North American hedge funds languished, down 0.60% and 0.94% respectively during the month.

Hedge Fund Performance Commentary

January 2016 | Eurekahedge


2015 did not end with much pomp and circumstance and was a challenging year for managers. Hedge funds ended 2015 on a low note with the Eurekahedge Hedge Fund Index down 0.70% in December, while the MSCI World Index declined 2.23% during the month. Overall for 2015, hedge funds were up 1.45% (their lowest annual return on record since 2011) amid a challenging market environment. Meanwhile underlying markets as represented by the MSCI World Index ended the year in the red, down 0.48%.

2015 Overview: Key Trends in Asian Hedge Funds

January 2016 | Eurekahedge


Market calamity took Asian hedge funds on a rough ride in 2015, and despite facing financial storms, Asian hedge funds have recorded positive assets under management (AUM) growth in the last quarter of 2015 with the industry’s total asset base growing by US$9.5 billion as of November 2015 year-to-date, bringing the total size of the industry to reach US$171 billion, managed by 1,423 hedge funds.

The New Section 4(a)(7) Exemption for Private Resales of Securities: What Does it Mean for Hedge Funds?

January 2016 | Scott C. Budlong, Richards Kibbe & Orbe LLP


On December 4, 2015, President Obama signed into law the Fixing America’s Surface Transportation Act (the ’FAST Act’). The legislation primarily related to the federal transportation matters, but lurking toward its end is an amendment to the Securities Act of 1933 (the ‘Securities Act’) establishing a new registration exemption for private resales of securities. The exemption is embodied in new §4(a)(7) of the Securities Act. It is largely based on (but does not replace) the so-called ‘Section 4(a)(1-½) exemption’ that securities lawyers have developed over time under the SEC’s eye.

Asset Flows Update

December 2015 | Eurekahedge


The Eurekahedge Hedge Fund Index continues to gain ground in Q4, ending with an increase of 0.77% during the month of November. Meanwhile underlying markets as represented by the MSCI World Index were up 0.38%. All hedge fund regional mandates posted positive returns during the month with most equity markets ending the month in positive territory.

Hedge Fund Performance Commentary

December 2015 | Eurekahedge


Hedge funds gained for the second consecutive month up 0.77% in November outperforming underlying markets as represented by the MSCI AC World Index All Core, which gained 0.38% during the month. November was dominated by the theme of a US rate hike later in the year, along with the European Central Bank's (ECB) dovish stance regarding further easing in the Eurozone. The latter has been to some extent realised earlier during the month when the ECB decided to cut deposit rates even further, adding to their menu an ever expansive array of negative yielding bonds on offer from countries otherwise plagued with anaemic growth. It would be interesting to see how this easy credit and the simultaneous calls for reforms aka austerity will lead the Eurozone onto firmer grounds.

2015 Overview: Key Trends in European Hedge Funds

December 2015 | Eurekahedge


The European hedge fund industry has been gaining ground despite the challenging circumstances in the Eurozone region. Given the strong recovery posted by European hedge funds, March 2014 saw the industry’s assets under management (AUM) breach past its October 2007 pre-crisis AUM of US$478.1 billion. The situation in Greece earlier this year has not deterred AUM growth in the region with total assets climbing steadily to reach US$525.9 billion as at October 2015, managed by a total of 3,998 hedge funds. On a year-to-date basis, the total AUM of European hedge funds has grown by US$39.1 billion, largely on the back of strong investor flows which have account for the bulk of this growth.

Interview with Larry Jones, Head of Portfolio Management, Alternative Solutions at AXA Investment Managers

December 2015 | Eurekahedge


AXA Investment Managers is an active, long-term, global, multi-asset investor focused on enabling more people to harness the power of investing to meet their financial goals. By combining investment insight and innovation with robust risk management, AXA IM has become the chosen investment partner of investors worldwide. Eurekahedge speaks to Larry Jones, Head of Portfolio Management, Alternative Solutions to find out more.

Interview with Tom Lin, Founder & Portfolio Manager at MMA Pan Asia Fund Management LLC

December 2015 | Eurekahedge


Founder and Portfolio Manager Tom Lin has extensive experience in the Asian equity markets as an analyst, investor, and an investment banker. Prior to founding the firm, Mr. Lin managed and launched technology equity sales units for Merrill Lynch, Lehman Brothers, and Deutsche Bank, as well as held a sector analyst role at Anthion Capital. Mr. Lin lived and worked in both Taiwan and Hong Kong for a combined 20 years.

New New Guidance Regarding Barrier Options

December 2015 | John Kaufmann, Greenberg Traurig


In a recently released Chief Counsel Advice Memorandum (the “CCA”), the Internal Revenue Service broadened its scrutiny of so-called ‘barrier option’ transactions, which tax-payers have used to defer recognition of income and to convert ordinary income and short-term capital gain to long-term capital gain. The government had previously announced that it would scrutinise these transactions in guidance released in 2010 and in July of this year. The CCA is consistent with the previous guidance, and expands upon it in two ways:

Asset Flows Update

November 2015 | Eurekahedge


The Eurekahedge Hedge Fund Index ended its four month losing streak, gaining 1.33% in October 2015. Underlying markets as represented by the MSCI World Index were also up this month, gaining 7.22%. Returns across all regional mandates were positive this month as the market rebounded in October.

Hedge Fund Performance Commentary

November 2015 | Eurekahedge


Hedge funds ended their four month losing streak, gaining 1.33% in October as most major equity markets ended the month in positive territory. Underlying markets as represented by the MSCI World Index posted strong gains during the month, up 7.22%. Central bank policies remained divergent with the European Central Bank (ECB) and the Bank of Japan (BoJ) rather dovish, reiterating their intent to meet inflation targets as part of their broader strategy to support growth in their respective economies. On the other hand, the Fed appears to be hinting at a long overdue rate hike in December which seems likely given the encouraging employment numbers coming out from the US as well as the stabilising outlook overseas - mainly China which appears to have weathered the worst for the moment.

2015 Overview: Key Trends in Latin American Hedge Funds

November 2015 | Eurekahedge


Latin American hedge funds have been experiencing dwindling interest from investors over the last few years as they cope with redemption pressure and stagnating performance-based gains compared to other regional mandates. The global economic slump throughout 2015 has not spared the Latin American economies - commodity-dependent countries in the region were affected by the slowing growth of export destination countries such as China and the US. The fall in commodity and oil prices and the weakening of the real and peso are also affecting the ability of companies to fulfil their debt obligations, while political instability continues to affect the region. Meanwhile, depending on the Fed’s interest rate hike timing, capital outflows from the Latin American region could put them in a worse shape than before.

Interview with Alex Goh, CFA, Investment Manager of Oak Spring Alpha Fund

November 2015 | Eurekahedge


With 20 years of experience in wealth management, the CEO of Abacus Asia Management, Alex Goh discusses the fund's origins and strategy, as well as overcoming challenges faced in the Asian markets.

Asset Flows Update

October 2015 | Eurekahedge


The Eurekahedge Hedge Fund Index fell into negative territory this month, down 0.58% in September 2015, though outperforming underlying markets as represented by the MSCI AC World Index All Core which lost 3.60% during the month. Returns across all regional mandates were mixed as market and macroeconomic themes are starting to shape investor sentiments globally

Hedge Fund Performance Commentary

October 2015 | Eurekahedge


Hedge funds fell for the fourth consecutive month in September down 0.58% though still outperforming underlying markets as represented by the MSCI AC World Index All Core, which declined 3.60% during the month. Equity markets continued their slide this month as markets are still reeling from the Chinese equity market swing over the past months. Further to that, soft PMI data from China and the Fed’s vacillation over its long overdue rate hike added to the risk-off sentiment in the market while a commodity induced deflationary environment will continue to be a source of worry for emerging markets as central banks have little room to manoeuvre given the existing low interest rate environment.

2015 Key Trends in North American Hedge Funds

October 2015 | Eurekahedge


The North American hedge fund industry grew by US$54.2 billion as of 2015 year-to-date, on the back of strong investor inflows which account for roughly two-thirds of total asset growth in the region. Despite mixed economic performance in the US during the year, investor inflows stood at US$34.5 billion while performance-driven gains stood at US$19.8 billion year-to-date, bringing the total assets under management (AUM) of the North American hedge fund industry to US$1.48 trillion managed by 5,432 hedge funds as at August 2015.

Asset Flows Update

September 2015 | Eurekahedge


The Eurekahedge Hedge Fund Index fell into negative territory this month, down 1.81% in August 2015, though outperforming underlying markets as represented by the MSCI World Index which was down 6.66% during the month. Returns across all regional mandates were dented this month as investors grew cautious of the uncertain economic outlook.

Hedge Fund Performance Commentary

September 2015 | Eurekahedge


Hedge funds fell into negative territory this month – down 1.81%, though comfortably outperforming underlying markets as the MSCI World Index lost 6.66%. Equity markets were down across the board this month with Chinese equity markets posting double-digit losses in the aftermath of the Chinese stock market correction. Disappointing macroeconomic data from China pointed towards a less optimistic outlook for Asia Pacific’s largest economy despite aggressive government intervention to ensure the country’s liquidity cushion is maintained. Fears of a financial contagion led equity markets down this month as investors were wary of a spill over from China’s volatile markets.

2015 Key Trends in Asian Hedge Funds

September 2015 | Eurekahedge


The Asian hedge fund industry grew steadily in 2015 with the asset base growing at twice the rate seen over the same period last year. With strong investor inflows during the year, total assets under management (AUM) increased by US$16.1 billion in July year-to-date, bringing the total size of the Asian hedge fund industry to US$177 billion managed by 1,413 hedge funds. In this month’s key trends in Asian hedge funds report, we include a feature on Greater China, a region which has made headlines since late-2014. Chinese authorities have sought active intervention in the markets with a series of interest rate cuts, municipal debt-swap programs and ease of banking restrictions through reserve ratio cuts and loan deposit ratios in an attempt to inject the Chinese economy with further liquidity. As such, Greater China mandated hedge funds have seen strong growth in the beginning of the year as the Chinese equity markets rallied on the backs of relaxed capital controls and improving infra

Special Report: Greater China Hedge Funds

September 2015 | Eurekahedge


Along with this month’s key trends in Asian hedge funds report, we include a feature on Greater China, a region which has made headlines since late-2014. Chinese authorities have sought active intervention in the markets with a series of interest rate cuts, municipal debt-swap programs and ease of banking restrictions through reserve ratio cuts and loan deposit ratios in an attempt to inject the Chinese economy with further liquidity.

Asset Flows Update

August 2015 | Eurekahedge


The Eurekahedge Hedge Fund Index rebounded this month, up 0.27% in July 2015, while the MSCI World Index was up 1.34%. Returns for Asia ex-Japan were dented this month, down 2.60% as the end of the Chinese equity market euphoria has depressed gains for hedge funds with Greater China exposure. However, European, North American and Japanese equity markets have bounced back from losses in the previous month with developed market hedge fund mandates posting good gains.

Hedge Fund Performance Commentary

August 2015 | Eurekahedge


Hedge funds bounced into recovery this month - gaining 0.27%, though still underperforming underlying markets as the MSCI World Index gained 1.34%. Equity markets were mostly up this month with the US, European and Japanese equity markets recovering from last month’s losses, while the Chinese equity markets sell-off seemed to show signs of bottoming out following active intervention by the Chinese authorities. Asia ex-Japan suffered their second consecutive month of losses, down 2.60% as its heavyweight Greater China funds were down 8.49%.

2015 Key Trends in Global Hedge Funds

August 2015 | Eurekahedge


The global hedge fund industry has seen a steady increase in its asset growth after experiencing uninterrupted redemption pressure in the second half of 2014, with asset growth totalling US$93.0 billion for the first half of 2015. Much of this growth is attributed to excellent performance-based gains which account for US$51.7 billion, together with continued investor inflows accounting for US$41.3 billion.

Private Equity and Hedge Fund Managers Take Caution – Proposed Treasury Regulations Threaten Management Fee Waivers

August 2015 | Karl P. Fryzel, Rebecca Melaas and Michael J. Conroy, Locke Lord LLP


On July 23, 2015, the Internal Revenue Service (IRS) issued long-awaited proposed regulations discussing the taxation of management fee arrangements commonly used by private equity funds and their management. The proposed regulations address the tax treatment of disguised payments for services under Section 707(a)(2)(A) of the Internal Revenue Code (the Code) where a partner has rendered services to a partnership in a capacity as other than a partner. By specifically classifying certain fee arrangements, including particular carried interest mechanisms, as disguised payments for services, the proposed regulations target purportedly abusive situations where private equity funds use management fee waivers to convert services income, taxable at the ordinary rates, into income items meriting capital gain treatment.

Asset Flows Update

July 2015 | Eurekahedge


The Eurekahedge Hedge Fund Index posted its first losing month in 2015, down 1.19% in June, outperforming underlying markets as represented by the MSCI World Index which was down 2.88% during the month. Despite a strong start to the year, events in Europe and China have dented hedge fund returns in June, with overall 1H 2015 returns coming in at 3.37%, comparable to the 3.11% gain seen over the same period last year.

Hedge Fund Performance Commentary

July 2015 | Eurekahedge


After five months of consecutive gains, hedge funds posted their first monthly loss in 2015 of 1.19% in June, though comfortably outperforming underlying markets as the MSCI World Index fell 2.88% during the same month. Asia ex-Japan mandated hedge funds suffered their worst month of losses since June 2013, down 1.58% as Chinese equity markets entered into correction during the month. The Shenzhen and Shanghai Composite Indices declined by 11.78% and 7.25% during the month respectively. Talks between Greece and its creditors further overshadowed markets with European managers also posting losses of 1.13% during the month.

2015 Key Trends in European Hedge Funds

July 2015 | Eurekahedge


The European hedge fund industry has been gaining ground despite the challenging circumstances in the Eurozone region. Given the strong recovery posted by European hedge funds, March 2014 saw the industry’s assets under management (AUM) of US$478.1 billion breach past its October 2007 pre-crisis AUM. The onset of the recent Greek crisis has not deterred AUM growth in the region as AUM continued to climb steadily from 2012 onwards, reaching US$506.8 billion, managed by 4,016 hedge funds in May 2015. On a year-to-date basis, the total AUM of European hedge funds grew US$20.1 billion, largely on the back of performance-based gains which account for roughly two-thirds of the total growth in European AUM in 2015.

2015 Key Trends in UCITS Hedge Funds

July 2015 | Eurekahedge


The Undertakings for Collective Investment in Transferable Securities, or ‘UCITS’, was designed to meet investor demand for well-regulated instruments monitored by improved compliance standards in the areas of investor protection, regulation and disclosure. The demand for UCITS products grew steadily after the financial crisis as UCITS hedge funds are of interest to investors especially during times of market stress. The regulatory bodies of the EU are continually updating and improving upon the product to maintain its relevance to investors, with the UCITS V being the most recent set of regulations implemented.

Fund Administration – Opportunities for Offshore and Alternative Investment Funds

July 2015 | Aki Corsoni-Husain and Elina Mantrali, Harneys


Following the implementation of the EU Alternative Investment Fund Managers (AIFM) Directive (2011/61/EC) and associated legislation, Cyprus now lays claim to being a growth jurisdiction within the European Union for the establishment and servicing of boutique and low cost alternative investment funds based locally or offshore. The choice of fund administrator is of paramount importance to the set-up of any hedge fund and in Cyprus there are many reasons to use or establish locally-based operations.

Asset Flows Update

June 2015 | Eurekahedge


The Eurekahedge Hedge Fund Index posted its fifth consecutive month of gains for 2015 and was up 0.54% in May while underlying markets as represented by the MSCI World Index gained 0.81% during the month. On a year-to-date basis, hedge funds are up 4.49% with Asian managers leading the tables with gains of 11.44%.

Hedge Fund Performance Commentary

June 2015 | Eurekahedge


Hedge funds posted their fifth consecutive month of gains, returning 0.54% in May, while the MSCI World Index was up 0.81%. Asian hedge funds were strong performers this month with both Japanese and Asia ex-Japan hedge funds outperforming underlying markets. Japan mandated funds reported gains of 2.06%, followed by Asia ex-Japan mandated funds which were up 1.81% during the month. Indeed, good performance of Asian hedge funds was backed by strong equity market performance in the region. Japanese equity markets performed well during the month with the Nikkei 225 and the Tokyo Topix posting gains of 5.34% and 5.08% respectively.

2015 Key Trends in Latin American Hedge Funds

June 2015 | Eurekahedge


Latin American hedge funds have been facing dwindling interest from investors over the past few years as they cope with redemption pressure and stagnating performance-based gains compared to other regional mandates. Despite challenges in the Latin American hedge funds space, managers have reported gains of 2.32% in 2014, outperforming the MSCI Latin America Index which was down 4.21% last year amid a difficult market environment.

Asset Flows Update for the Month of April 2015

May 2015 | Eurekahedge


Hedge funds edged higher in April to close at another record high, with the Eurekahedge Hedge Fund Index gaining 0.93%. However, hedge funds underperformed underlying markets this month as the MSCI World Index gained 1.25%. Easy monetary policy in Japan and Europe continued to push regional equities into record territory, while US market volatility rose with increasing uncertainty over the Federal Reserve’s timing of interest rate hikes and the outcome of the Greek talks.

Hedge Fund Performance Commentary for the Month of April 2015

May 2015 | Eurekahedge


Hedge funds posted their fourth consecutive month of gains returning 0.93% in April, while the MSCI World Index was up 1.25%. The NYSE Composite posted gains of 1.38% as of April, despite mediocre retail sales slump figures. Investor optimism fuelled by aggressive stimulus measures by the Chinese central bank is reflected in the strong climb of the CSI 300 Index closing the month of April with gains of 17.85%. With a continued equity rally in Japan headed by Japanese pension funds and further quantitative expansion by Bank of Japan, the Nikkei 225 closed April with gains of 1.63%. Meanwhile, in Europe, the ‘Grexit’ decision has yet to be made as talks towards averting the Greek government default are still in progress.

2015 Key Trends in Funds of Hedge Funds

May 2015 | Eurekahedge


The global funds of hedge funds sector continued to face headwinds with total assets under management (AUM) of the industry in a steady decline since 2011. As of Q1 2015, the AUM of the funds of hedge funds sectors stands at US$505.9 billion managed by a total of 2,988 funds, having declined by roughly US$300 billion since their 2007 peak of US$808.7 billion.

Asset Flows Update for the Month of March 2015

April 2015 | Eurekahedge


Hedge funds edged even higher in March to close at another record high, with the Eurekahedge Hedge Fund Index gaining 0.78%, outperforming underlying markets as the MSCI World Index fell 0.39%. Easy monetary policy in Japan and Europe continued to push regional equities into record territory, while US market volatility rose with increasing uncertainty over the Federal Reserve’s timing of interest rate hikes and the outcome of the Greek talks.

Hedge Fund Performance Commentary for the Month of March 2015

April 2015 | Eurekahedge


Hedge funds reported their third consecutive month of gains, returning 0.78% and outperforming underlying markets as the MSCI World Index finished the month down 0.39%. Global equity markets performance was mixed, with overall gains seen in Europe and Japan while US equity markets retreated following weaker durables data signalling that perhaps the stronger dollar is finally beginning to bite into the US economic recovery. Although expected, the Federal Reserve made headlines during the month by dropping the word ‘patience’ from its statement during the month, opening up the possibility of an interest rate hike as soon as June but simultaneously reassuring investors that any rise would be gradual.

Asset Flows Update for the Month of February 2015

March 2015 | Eurekahedge


Hedge funds edged even higher in February to close at another record high, with the Eurekahedge Hedge Fund Index gaining 1.57%, though underperforming underlying markets as the MSCI World Index gained 5.47% after equities surged higher during the month. A return of investor risk appetite and easy monetary policy pushed equities into record territory, while volatility faded away with investors gaining further confidence in the market’s strength.

Hedge Fund Performance Commentary for the Month of February 2015

March 2015 | Eurekahedge


Hedge funds extended their gains in the second month of 2015, returning 1.57%, although falling behind underlying markets as the MSCI World Index was up 5.47%. Global equity markets rose in unison during February with a return of investor risk appetite as the market downplayed fears of contagion from a possible ‘Grexit’; further supported by accommodative monetary policies from central banks around the world. Volatility faded away along with increased investor confidence and rising equity markets with the CBOE VIX falling from 20.97 to 13.34.

2014 Overview: Key Trends in North American Hedge Funds

March 2015 | Eurekahedge


North American hedge funds recorded excellent growth over the past 13 months despite a slowdown in the pace of expansion since the second half of 2014, raising the region’s share of assets under management (AUM) by another US$93.8 billion to approximately two thirds of the global hedge fund industry. As of January 2015, the total AUM of the North American hedge fund industry is closing in on the US$1.45 trillion mark and stands at US$1.447 trillion managed by a total of 5,267 hedge funds.

Asset Flows Update for the Month of January 2015

February 2015 | Eurekahedge


Hedge funds were off to a strong start in 2015, with the Eurekahedge Hedge Fund Index gaining 1.29%, outperforming underlying markets as the MSCI World Index fell 0.41% over concerns about a lack of global demand and Greece’s debt problems. This atmosphere of uncertainty and central bank activity contributed to heightened market volatility, which picked up in the first trading month of the year. US equities witnessed their largest loss since January 2014, underperforming global markets significantly as concerns over the strong US dollar and declining growth overseas weighed in on regional markets despite the strong economic picture in the US.

Hedge Fund Performance Commentary for the Month of January 2015

February 2015 | Eurekahedge


Hedge funds started 2015 on a good note, gaining 1.29% and outperforming underlying markets as the MSCI World Index slipped 0.41%. Global equity markets displayed mixed performance in January as the economic picture remained weak with fears mounting about a lack of global demand and high sovereign debt burdens. Volatility also rose as central bank actions dominated the markets during the month, with the CBOE VIX Index rising from 19.2 to 20.97 amid this atmosphere of uncertainty.

2014 Overview: Key Trends in Islamic Funds

February 2015 | Eurekahedge


Islamic finance plays a key role in the global economy, covering the financial needs of the currently underserved Muslim population. With Muslims forming a quarter of the world’s population, this is potentially a very large market, yet less than 1% of financial assets are Shariah-compliant. Indeed, there appears to be a clear supply imbalance and the Islamic fund industry has been growing steadily over the years to accommodate this demand. While it does not seem likely to have reached a peak, the industry is projected to grow significantly larger driven by a younger generation of Muslims who are more open towards investing in financial assets, and also by wider increases in productivity and prosperity.

Asset Flows Update for the Month of December 2014

January 2015 | Eurekahedge


Hedge funds finished 2014 up 4.46%, with the Eurekahedge Hedge Fund Index gaining another 0.14%, outperforming underlying markets as the MSCI World Index fell 0.80% in December after equities retreated from their intra-month heights. Further steep falls in oil prices and fears of a global slowdown contributed to an atmosphere of uncertainty, which caused volatility to pick up in the final trading month of the year as the market traded in a choppy sideways manner.

Hedge Fund Performance Commentary for the Month of December 2014

January 2015 | Eurekahedge


Hedge funds rounded up the final month of 2014 in positive territory, up 0.14%, outperforming underlying markets as the MSCI World Index lost 0.80%. Global equity markets largely traded sideways to end December in negative territory, fuelled by further steep falls in oil prices and fears of a global slowdown. Volatility also picked up in the final trading month of the year amid the atmosphere of uncertainty - reflected in the CBOE VIX Index which rose 44.04% to 19.2 during the month of December. Most of the salient macroeconomic themes from November maintained their relevance going into December; mainly the fall in oil prices and the impact of divergent central bank policies.

2014 Key Trends in Global Hedge Funds

January 2015 | Eurekahedge


Global hedge funds have maintained a steady pace of growth building upon the strong gains seen in 2013, with new investor allocation activity totalling US$40.8 billion in the first eleven months of 2014. Combined with excellent performance-based gains of US$76.5 billion delivered by hedge fund managers, this puts the current assets under management (AUM) of the industry at US$2.13 trillion – another new high.

Special Report: Indian Hedge Funds

January 2015 | Eurekahedge


India focused hedge funds have posted spectacular returns in 2014 against the backdrop of rising domestic equity markets, and a renewed sense of confidence in the Indian economy which is being led by Narendra Modi. Hedge funds investing with an Indian mandate have topped the performance tables in 2014 and in this special section of The Eurekahedge Report, we ask some of the top performing Indian hedge fund managers about their winning themes during the year, in addition to investor allocation activity and the key macroeconomic themes which they will be watching out for in 2015.

Hedge Fund Performance Commentary for the Month of November 2014

December 2014 | Eurekahedge


Hedge funds rebounded from the prior two months’ losses, finishing the month up 1.40% , underperforming underlying markets as the MSCI World Index gained 2.34%. Global equity markets extended their rally into November after the previous month’s v-shaped recovery, with investors piling back into risky assets as October’s fall was seen as a healthy correction after a lengthy period of rising prices. Investors remained in a buoyant mood about the markets, evidenced by the CBOE VIX Index falling 4.99% during the month, with strong gains in developed economies as well as emerging Asia.

2014 Overview: Key Trends in European Hedge Funds

December 2014 | Eurekahedge


The European hedge fund industry continues its recovery amid a difficult market environment with current assets under management (AUM) standing at US$487.9 billion overseen by a population of 3,949 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of global AUM was 24.9% which has since fallen to 22.9%. The total AUM of European hedge funds grew US$33.4 billion in 2014, largely on the back of new investor inflows, and is now 3.2% above its pre-crisis peak in 2007.

Interview with Wong Kok Hoi, Founder & CIO at APS Asset Management

December 2014 | Eurekahedge


With 30 years of investment experience, 6 offices around Asia and approximately US$3.2 billion in total assets, Wong Kok Hoi, Founder & CIO at APS Asset Management, discusses the challenges and opportunities of investing in Asia. Through this video interview, Wong Kok Hoi shares his investment philosophy, reasons attributed for strong performance during 2008 to 2009, the investment environment post-Madoff and the challenges hedge fund startups face in current times.

New Managed Accounts Exemption Opens Doors for Jersey Fund Managers

December 2014 | Robert Milner, James Mulholland, Daniel O’Connor Carey Olsen


A new exemption from the requirements of Jersey’s Financial Services (Jersey) Law 1998 (FS(J)L) has been introduced which will enable Jersey-regulated fund managers to service qualifying segregated managed accounts (QSMAs) without the need for further regulation in Jersey while continuing to benefit from Jersey’s 0% corporate income tax rate.

Asset Flows Update for the Month of October 2014

November 2014 | Eurekahedge


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 Fund Performance Commentary for the Month of October 2014

November 2014 | Eurekahedge


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

2014 Key Trends in Latin American Hedge Funds

November 2014 | Eurekahedge


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.

Taking Aim – the SEC’s Continued Focus on Hedge Funds

November 2014 | Nicholas Lewis, McGuireWoods LLP


“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.

Asset Flows Update for the Month of September 2014

October 2014 | Eurekahedge


Hedge funds ended September flat with the Eurekahedge Hedge Fund Index returning 0.00%, outperforming underlying markets as the MSCI World Index slipped 1.86%, with market volatility picking up after the seasonal summer doldrums. In the US, investors are gearing up in earnest at the prospect of tighter monetary policy in the United States as the economic recovery continues to gain strength, with concerns continuing to remain regarding the pace of a rate rise given the mammoth challenge of unwinding the Fed’s balance sheet.

Hedge Fund Performance Commentary for the Month of September 2014

October 2014 | Eurekahedge


Hedge funds were marginally negative in September, closing the month down 0.05, outperforming underlying markets as the MSCI World Index fell 1.86% on concerns over the pacing of rate hikes in the US. The protests in Hong Kong towards the end of the month also weighed in on investor sentiment, adding further selling pressure to equity markets which were already jittery at the prospect of rising rates. September saw a sharp rise in investor risk aversion, resulting in a corresponding flight to safe assets while the CBOE VIX Index rose to 16.31 during the month.

2014 Key Trends in North American Hedge Funds

October 2014 | Eurekahedge


North American hedge funds continued to record excellent growth for 2014 year-to-date, keeping up with the strong gains seen in 2013 which has raised the region’s share of assets under management (AUM) to approximately two-thirds of the global hedge fund industry. As at August 2014, the total AUM of the North American hedge fund industry has breached the US$1.4 trillion mark to stand at US$1.43 trillion managed by a total of 5,093 hedge funds.

2014 Overview: Key Trends in Funds of Hedge Funds

October 2014 | Eurekahedge


Fund of hedge funds grew slightly during the year, with the Eurekahedge Fund of Funds Index gaining 2.59% in the first eight months of 2014, coming in behind single managers who returned 3.87%. Although the industry continues to face heavy redemption pressure, assets under management (AUM) of the industry saw a small recovery for 2014 year-to-date, with AUM climbing up to US$529.3 billion managed by a total of 3,122 funds.

The New Deal: Hedge Fund Management Fees Are Subject to Social Security Taxes

October 2014 | Mark Leeds, Mayer Brown


It’s probably fair to speculate that there were significant numbers of tax aficionados (including the author of this article) among the audience for Ken Burns’ recent public television extravaganza on the Roosevelt dynasty. Unfortunately for this segment of the audience, the intersection of tax and FDR was not highlighted, with the passage of the Social Security Act receiving only scant mention. Social security taxes have risen dramatically since the enactment of the law.

Asset Flows Update for the Month of August 2014

September 2014 | Eurekahedge


Hedge funds ended August in positive territory with the Eurekahedge Hedge Fund Index up 1.30% trailing the MSCI World Index which gained 2.48%, with market volatility falling across the different asset classes. In the US, the economy continues to show modest growth, prompting more speculation regarding possible revisions to the schedule for the Fed’s eventual raising of interest rates. Over in the Eurozone, inflation and growth remains weak, spurring Draghi into action to fulfil his commitment towards fighting deflation. European equities rallied in anticipation of a fresh round of quantitative easing, with regional markets ending the month largely in positive territory.

Hedge Fund Performance Commentary for the Month of August 2014

September 2014 | Eurekahedge


Hedge funds rebounded strongly in August to close the month up 1.30%, trailing underlying markets as the MSCI World Index gained 2.48% on the back of modest growth figures which were driven largely by an improving outlook for the US economy. August witnessed another renewed wave of investor optimism which continued to push global equity markets higher and volatility back down.

2014 Key Trends in UCITS Hedge Funds

September 2014 | Eurekahedge


UCITS, as defined by the EU, refers to the term ‘Undertakings for Collective Investment in Transferable Securities’. They arose out of calls for an increase in the regulatory oversight of alternative investment managers, setting strict standards in the areas of investor protection, regulation and disclosure. The regulatory bodies of the EU are continually updating and improving upon the product to maintain its relevance to investors, with the most recent UCITS V set of regulations to be implemented by 17 September 2014.

Asset Flows Update for the Month of July 2014

August 2014 | Eurekahedge


Hedge funds finished the month of July in the red with the Eurekahedge Hedge Fund Index down 0.10% (2.82% year-to-date), outperforming the MSCI World Index which declined 0.83% from rising geo-political tensions between Russia and the west, and concerns over Portugal’s banking sector weighed in on investor sentiment. Despite strong second quarter growth numbers in the US, anxiety continues to grow regarding the timing for the Fed’s abandonment of its zero-interest-rate policy following dissenting opinions on the issue in the recent FOMC meeting. Asian markets evaded the overall negative sentiment as healthy macro-economic numbers from China gave a boost to regional equity markets with Asian mandated hedge funds ending July on a strong note.

Hedge Fund Performance Commentary for the Month of July 2014

August 2014 | Eurekahedge


Hedge funds edged lower to close 0.10% down by the end of July, following underlying markets as the MSCI World Index lost 0.83% during the same period. Equity markets around the world saw mixed gains, with the strongest performers being Asia Pacific and Latin America while North America and Europe suffered losses. North American and European stock indices actually traded higher during July despite rising geo-political tensions between Russia and the west before taking a steep dive in the closing week, finally giving way as a slew of international crises weighed in on investor sentiment, including but not limited to: Israel’s strikes on Gaza, Portuguese bank bailout, trade sanctions against Russia and the Ebola epidemic in Africa. Meanwhile in the US, strong second quarter growth numbers continue to create increasing anxiety regarding the timing for the Fed’s abandonment of its zero-interest-rate policy, with the US dollar appreciating sharply on the back of the stronger economy and exp

2014 Key Trends in Global Hedge Funds

August 2014 | Eurekahedge


Global hedge funds have maintained a level of growth comparable with the strong gains seen in 2013, with robust allocation activity totalling US$65.3 billion in the first half of 2014. Combined with excellent performance-based gains of US$40.3 billion delivered by hedge fund managers this puts the current assets under management (AUM) of the industry at a new high of US$2.12 trillion. The global hedge fund population now stands at 10,844 funds strong as at June 2014.

Widening the Scope: the SEC Turns Its Attention to Alternative Mutual Funds

August 2014 | Nicholas Lewis, McGuireWoods LLP


In a recent speech to the Practising Law Institute’s Private Equity Forum, Norm Champ, Director of the SEC’s Division of Investment Management, discussed the SEC’s increasing attention to the growth in ‘alternative mutual funds’, or open-end mutual funds that feature investment strategies more typically seen in private funds. Similar to recent speeches and discussions related to the SEC’s oversight of hedge funds, previously discussed in this newsletter last November, Champ’s speech contained useful guidance about the types of risks the SEC is monitoring in the alternative mutual fund space, but it also conveyed that the SEC will be ramping up inspection into whether investment advisers to these funds are fully complying with their duties.

Hedge Funds: All Eyes on the World Cup (and Reinsurance)

August 2014 | Martin Mankabady, Clyde & Co


The World Cup was fantastic and surpassed all expectations. It is a shame that England could not also have surpassed expectations. Amidst all the coverage of the event, there was one interesting article in the press, which did not cover the usual ground of match reports, injury updates and post-mortems of England’s or Brazil’s performance – it was an article on how hedge funds are investing in the football sector and will continue to do so. The interest generated by the World Cup is only likely to whet the appetite of such investors even further.

Asset Flows Update for the Month of June 2014

July 2014 | Eurekahedge


Hedge funds ended June in positive territory with the Eurekahedge Hedge Fund Index up 1.25% and ended the second quarter of the year on a stronger note. On a year-to-date basis, hedge funds are up 3.00% while the MSCI World Index has returned 4.27% in the first half of 2014. Global markets were supported by accommodative monetary policies in June and steady gains in the US jobs market data, with the ECB initiating negative rates on bank deposits and indicating that unconventional monetary policy tools were still in reserve should the mild recovery in Eurozone falter.

Hedge Fund Performance Commentary for the Month of June 2014

July 2014 | Eurekahedge


Hedge funds followed global equity markets higher to close 1.25% up by the end of June, with the Eurekahedge Hedge Fund Index reaching another new high during the month. Global equity markets saw another month of broad-based gains in June, with the strongest performers being Asia Pacific and Latin America for the emerging economies and North America for developed economies. Central bank policy remains one of supporting economic recovery, with the Fed continuing to reaffirm its stance on keeping interest rates low ‘for a considerable time’ after the end of tapering, while the ECB initiated negative rates on bank deposits in an unconventional move to raise inflation to target levels. While tensions in Ukraine appear to be easing, instability has begun brewing again in the Middle East, threatening to disrupt global oil supplies.

2014 Key Trends in Asian Hedge Funds

July 2014 | Eurekahedge


The Asian hedge fund industry struggled to duplicate their previous year’s outstanding performance amid a more volatile market environment, gaining only 0.31% but outperforming underlying regional markets by over 2% as at May 2014 year-to-date. Total assets under management (AUM) increased by US$5.2 billion during the same period, largely supported by fresh investor inflows, bringing the total size of the Asia hedge fund industry to US$152.8 billion managed by a population of 1,357 hedge funds.

Hushmail: Are Activist Hedge Funds Breaking Bad?

July 2014 | Mark D. Gerstein, Bradley C. Faris, Timothy P. FitzSimons and John M. Newell, Latham & Watkins LLP


Increasingly, some activist hedge funds are looking to sell their stock positions back to target companies. How should the board respond to hushmail?

Asset Flows Update for the Month of May 2014

June 2014 | Eurekahedge


Hedge funds ended May in positive territory with the Eurekahedge Hedge Fund Index up 1.12% as global markets showed signs of stabilisation following a choppy start to the year. Moderate levels of global economic activity coupled with a supportive monetary policy outlook led to a pro-risk environment in May which saw equities and bonds appreciate while volatility levels subsided.

Hedge Fund Performance Commentary for the Month of May 2014

June 2014 | Eurekahedge


Hedge funds rebounded strongly in May following April’s and March’s losses to finish the month up 1.12%, with the Eurekahedge Hedge Fund Index reaching new heights during the month. Global markets trended upwards as the Fed reiterated its dovish stance on keeping long term interest rates low in order to sustain an ongoing recovery in the US economy after GDP figures showed that the US economy had contracted in Q1 2014. Similar support built up in the Eurozone region where market participants expected the ECB to ease its monetary policy to stave of deflation worries, an expectation that was correctly realised when the ‘Draghi put’ was officially executed earlier this month in the form of negative interest rates on bank deposits.

2014 Key Trends in Latin American Hedge Funds

June 2014 | Eurekahedge


The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years with the Eurekahedge Latin America Hedge Fund Index up 14.5% on an annualised basis since December 1999 and total assets under management (AUM) of the industry currently standing at US$60.8 billion. Since the start of the new millennium the Latin American hedge fund industry has witnessed tremendous growth, both in terms of number of funds and AUM.

The Billion Dollar Interview with Gabriel Srour, Hedge Funds Co-CIO at Gávea Investimentos

June 2014 | Eurekahedge


Gávea Investimentos was founded in 2003 by Arminio Fraga Neto, former Governor of the Central Bank of Brazil and former Managing Director at the Soros Fund and Luiz Henrique Fraga, former President of Latinvest Asset Management. The firm started with the launch of a Global Macro hedge fund with a focus on Emerging Markets. As the business successfully evolved, clients expressed the desire for investing in private equity in Brazil using our expertise. We then established in 2006 our Private Equity line of business which, as of May 2014, has completed 45 investments and 23 successful exits. Over the last three years, we have added two new lines of business that have been consistently expanding: Public Equities and Real Estate

AIMA Japan and Eurekahedge Survey

June 2014 | Eurekahedge


Eurekahedge was commissioned by AIMA (Japan) to conduct a survey of Japanese investors. The survey itself was conducted from end of March to April 2014 to gauge important insights into market sentiment, investment trends and key regulatory challenges facing the Asian asset management industry, with a particular emphasis on the outlook for Japan. The key findings from this survey are presented in this paper based on responses submitted by a total of 131 survey participants. As for the investment advisors who participated in the Survey, they are collectively advising and/or managing assets in excess of US$3.8 trillion.

Asset Flows Update for the Month of April 2014

May 2014 | Eurekahedge


Hedge funds posted their second consecutive month of negative returns in April with the Eurekahedge Hedge Fund Index down 0.13% as global markets continued to falter amid a sluggish start to the year. On a year-to-date basis, hedge funds are up 0.78%, slightly ahead of the MSCI World Index which returned 0.75% in the first four months of the year.

Hedge Fund Performance Commentary for the Month of April 2014

May 2014 | Eurekahedge


Hedge funds have been in negative territory for three out of four months this year, losing an additional 0.13% in April following the losses from March. They are still up 0.78% for the year, slightly beating the MSCI World Index which gained 0.75% during the same period. The two largest central banks in the world jittered global markets as they deliberated on monetary policy. In April, the Fed meeting clarified that with inflation still low and sluggish growth in the US, it would be a considerable period of time before the first interest rate hike, even while asset purchases continued to taper.

2014 Key Trends in Funds of Hedge Funds

May 2014 | Eurekahedge


Funds of hedge funds had a sluggish start to the year, with the Eurekahedge Fund of Funds Index gaining 0.53% in the first quarter of 2014. They enjoyed somewhat better performance during the previous year in which they reported gains of 8.15%, outperforming single managers who gained 8.07% collectively in 2013 with a higher risk factor. Although the industry continues to face heavy redemption pressure, assets under management (AUM) of the industry saw some respite in the first quarter of 2014, with AUM holding steady at US$524.5 billion managed by a total of 3,145 funds.

Hedge Funds Strategies and Shariah Compliant Short Selling

May 2014 | Irfan A Naheem, Infinity Consultants


Hedge funds are a touchy subject in Islamic finance, with scholars widely disagreeing about the Shariah compliance of various strategies. Irfan A Naheem talks us through the key concepts and controversies.

Asset Flows Update for the Month of March 2014

April 2014 | Eurekahedge


Hedge funds sealed the first quarter of the year with another month of negative returns, down 0.35% in March as managers navigated through a choppy start to the year. However, strong returns posted by fund managers in the previous month saw them through with the Eurekahedge Hedge Fund Index up 0.87% in Q1 2014, outperforming the MSCI World Index which has gained 0.67% over the same period.

Hedge Fund Performance Commentary for the Month of March 2014

April 2014 | Eurekahedge


Hedge funds hit another rough patch as the first quarter of 2014 drew to a close, giving back part of their February gains to finish the month down 0.35%, with the MSCI World Index returning a flat 0.04% during the month. Global markets remained largely flat-to-negative during the month as better than expected US jobs data and the reduction of the Fed’s monthly asset purchase program by another US$10 billion heightened concerns that US interest rates could rise faster than previously anticipated.

2014 Key Trends in European Hedge Funds

April 2014 | Eurekahedge


The European hedge fund industry continued its recovery amid a difficult market environment with current assets under management (AUM) standing at US$461.7 billion overseen by a population of 3,988 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of Global AUM was 24.9%, which has since fallen to 22.7%. The Eurekahedge European Hedge Fund Index gained 8.39% over the past 12 months, with total AUM of European hedge funds growing US$83.5 billion during the same period, bringing it close to their 2007 high.

Asset Flows Update for the Month of February 2014

March 2014 | Eurekahedge


Hedge funds posted a strong rebound in February with the Eurekahedge Hedge Fund Index up 1.79% as underlying markets rallied with the MSCI World Index gaining 3.87% during the month. Final asset flow figures for January revealed that managers incurred performance-based losses of US$4.5 billion while recording net asset outflows of US$1.7 billion as hedge funds got off to a rough start in 2014. Preliminary data for February shows that managers have posted performance-based gains of US$14.8 billion while net asset inflows stand at US$11.0 billion, bringing the current assets under management (AUM) of the industry to US$2.03 trillion – the highest level on record.

Hedge Fund Performance Commentary for the Month of February 2014

March 2014 | Eurekahedge


Hedge funds bounced off the lows in January to finish the month up 1.79% as global equity markets recovered with the MSCI World Index gaining 3.87% during the month. Market sentiment held strong as weaknesses in recent US macroeconomic data were largely attributed to the weather conditions, with Fed chair Janet Yellen reaffirming the need to keep the QE tapering on track as the US economy continues its recovery. Emerging markets also showed signs of stability with the MSCI Emerging Market Index rising 2.15% during the month. Positive macroeconomic data from the Eurozone showed acceleration in manufacturing activity which provided further support to the markets, while tensions surfacing in Crimea towards the month end failed to dampen investor sentiment.

Hedge Funds in APAC: Legal and Regulatory Treatment

March 2014 | Gareth Pyburn, InsightLegal Asia Consulting


There continues to be great interest in and steady growth of hedge funds in APAC, which is driven by both market and regulatory factors. Hong Kong and Singapore remain the two most competitive jurisdictions in terms of attracting funds and fund managers; however, each has its own particular strengths and disadvantages. InsightLegal Asia Consulting specialises in ‘clarifying complexity’ and below we provide some guidance on how regulatory initiatives in Asia-Pacific are affecting the development of different types of fund and hedge fund structures in APAC.

Asset Flows Update for the Month of January 2014

February 2014 | Eurekahedge


Hedge funds started off the year against the backdrop of a difficult market setting as concerns over the health of the global economic recovery resurfaced; aided by disappointing PMI numbers from China and a deteriorating situation in emerging economies as the ‘QE withdrawal symptoms’ began to manifest themselves yet again. The Eurekahedge Hedge Fund Index was down 0.48% during the month, outperforming underlying markets as the MSCI World Index declined 3.74% in January.

Hedge Fund Performance Commentary for the Month of January 2014

February 2014 | Eurekahedge


Hedge funds were down 0.48% in January, outperforming underlying markets as the MSCI World Index declined 3.74% during the month with global markets off to a bumpy start in 2014. Global markets trended downwards during the month led by weak US jobs data and discouraging PMI numbers from China. Market sentiment weakened further towards the month-end as the Fed announced another round of QE trimming which catalysed investor flight from emerging economies and led credence to concerns regarding the health of the global economic recovery. Emerging market currencies also came under sharp selling pressure with markets watching carefully as the global economy transitions to a post-QE world.

2013 Overview: Key Trends in Asian Hedge Funds

February 2014 | Eurekahedge


The Asian hedge fund industry delivered excellent performance in 2013, beating underlying markets and outperforming its global peers during the year. The Eurekahedge Asia Hedge Fund Index gained 16.10% in 2013 with the total assets under management (AUM) increasing by US$20.6 billion. This brings the total size of the Asian hedge fund industry to US$147.0 billion managed by a population of 1,333 hedge funds.

Asset Flows Update for the Month of December 2013

January 2014 | Eurekahedge


Hedge funds witnessed their fourth consecutive month of positive returns as global markets ended the year on a strong note of optimism. The Eurekahedge Hedge Fund Index was up 0.98% during the month, bringing its 2013 returns to 8.02%. Global markets welcomed outgoing Fed chairman Ben Bernanke’s commitment to a low interest rate regime in the post-QE tapering environment with the MSCI World Index gaining 1.67% in December.

Hedge Fund Performance Commentary for the Month of December 2013

January 2014 | Eurekahedge


Hedge funds delivered their fourth consecutive month of positive returns as global markets ended the year on a positive note. The Eurekahedge Hedge Fund Index was up 0.98% during the month while the MSCI World Index gained 1.67% in December. Global markets digested the news of the much awaited QE tapering as the Fed reiterated its resolve to keep interest rates low in order to sustain a continued recovery in the US economy. While North American and European markets edged upwards on the news, emerging market fears over capital outflows resurfaced with the MSCI Emerging Markets Index declining 0.93% during the month. Asian markets were mixed during the month as tightening liquidity in mainland China coupled with a decline in the country’s PMI gauge dampened investor sentiment.

2013 Overview: Key Trends in Global Hedge Funds

January 2014 | Eurekahedge


Global hedge funds have had a good run in 2013, with the industry attracting net asset flows of US$127.4 billion in the first 11 months of the year. This robust allocation activity, combined with excellent performance-based gains of US$85.6 billion delivered by hedge fund managers puts the current assets under management (AUM) of the industry at US$1.99 trillion.

Hedge Fund and Private Equity Fund Secured Loans and the Volcker Rule

January 2014 | Bryan G. Petkanics and Paul W.A. Severin, Loeb & Loeb LLP


Loans secured by interests in hedge funds and, to a lesser extent, private equity funds have been a staple of many banks’ credit offerings for years. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, H.R. 4173) (Dodd-Frank) in general, and the part thereof known as ‘the Volcker Rule’ in particular, have raised a basic question: “Can a banking institution subject to the Volcker Rule (which is virtually every banking institution in the U.S.) continue to make and enforce hedge fund and private equity fund secured loans?”

Top Ten Things Every Asian Hedge Fund Manager Should Know About AIFMD

January 2014 | Sarah Bowles, Darren Fox, Rolfe Hayden and Gaven Cheong, Simmons & Simmons


The European Union Directive on Alternative Investment Fund Managers (Directive 2011/61/EU) (AIFMD) was required to be implemented into the national laws of the 28 Member States of the European Union (EU) by 22 July 2013 and also into the national laws of the three additional European Economic Area (EEA) states (Norway, Iceland and Liechtenstein) by a date to be determined. On 19 December 2012, the European Commission (the Commission) published a delegated regulation supplementing AIFMD (the Level 2 Regulation), which sets out further detail around certain other provisions in AIFMD and is directly applicable in the Member States without the need for implementation.

Asset Flows Update for the Month of November 2013

December 2013 | Eurekahedge


Hedge fund returns were up for the third consecutive month as markets remained upbeat following encouraging job creation data from the US, with Janet Yellen’s dovish sentiments regarding the short-term continuation of the Fed’s QE program giving a further leg up to investor sentiment. The Eurekahedge Hedge Fund Index was up 1.31% during the month, bringing its year-to-date (YTD) return to 7.34%. The MSCI World Index gained 1.27% during the month.

Hedge Fund Performance Commentary for the Month of November 2013

December 2013 | Eurekahedge


Hedge funds delivered their third consecutive month of positive returns as global markets maintained their upward momentum. The Eurekahedge Hedge Fund Index was up 1.31% during the month, edging past the MSCI World Index which gained 1.27% in November.

2013 Overview: Key Trends in Latin American Hedge Funds

December 2013 | Eurekahedge


The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years with the Eurekahedge Latin America Hedge Fund Index up 15.0% on an annualised basis since December 1999 and the total assets under management (AUM) of the industry currently standing at US$61.3 billion.

Asset flows update for the month of October 2013

November 2013 | Eurekahedge


Hedge fund returns were up for the second consecutive month in October amid trend reversals in the underlying markets. The Eurekahedge Hedge Fund Index was up 1.41% during the month, bringing its year-to-date return to 5.84%. The MSCI World Index gained 3.75% during the month.

Hedge Fund Performance Commentary for the Month of October 2013

November 2013 | Eurekahedge


Hedge funds delivered healthy gains in October as global markets trended upwards during the month. The Eurekahedge Hedge Fund Index was up 1.41% during the month, while global stock indices outperformed as the MSCI World Index gained 3.75% in October.

2013 Overview: Key Trends in Funds of Hedge Funds

November 2013 | Eurekahedge


Funds of hedge funds have had a positive year so far in 2013 with the Eurekahedge Fund of Funds Index gaining 4.18% at September year-to-date, and outperforming the benchmark Eurekahedge Hedge Fund Index in five out of the first nine months of the year. While a rebound in market sentiment has helped multi-managers post performance-based gains, their return to historical highs continues to be undermined by the trend of negative asset flows in the industry which were recorded at US$67.3 billion as at end-September 2013.

A New Era of Openness, or Open Season on Hedge Funds?

November 2013 | Nicholas Lewis, McGuireWoods LLP


In a recent speech1 before the Managed Funds Association, U.S. Securities & Exchange Commission (SEC) Chair Mary Jo White discussed what she called a “new era of transparency and openness” for the private funds industry, including hedge funds. Her address largely provided an overview of two significant pieces of legislation, namely, the Dodd-Frank Act, which among other things requires most hedge fund advisers to register with the SEC, and the JOBS Act, which lifted the longstanding ban on solicitation in connection with certain private securities offerings.

Hedge Fund Managers: Your 2013 Annual Compliance Check-Up – Quick Tips on Doing a Self-Diagnosis

November 2013 | Ronald M. Kosonic and Sarah K. Gardiner, Borden Ladner Gervais


Canada, in keeping with the rest of the world, has seen unprecedented change in the regulation of the financial markets over the past five years – not only in scope and detail, but also in speed of implementation. At the same time, regulators have stepped up their oversight with both broad-based and targeted compliance audits, resulting in the need for financial services participants to place an increasing focus on compliance.

Asset flows update for the month of september 2013

October 2013 | Eurekahedge


Hedge funds were back in the black in September amid rallies in the underlying markets. The Eurekahedge Hedge Fund Index was up 1.18% during the month as global markets trended upwards, war in the Middle East was averted and the US Federal Reserve did not announce the speculated tapering of its asset purchase program. The MSCI World Index gained 3.87% during the month.

Hedge Fund Performance Commentary for the Month of September 2013

October 2013 | Eurekahedge


Hedge funds realised gains in September as global markets trended upwards during the month. The Eurekahedge Hedge Fund Index was up 1.18% while global stock indices outperformed as the MSCI World Index gained 3.87% in September.

2013 Key Trends in European Hedge Funds

October 2013 | Eurekahedge


The European hedge fund industry continued its recovery amid a difficult market environment with its current assets under management (AUM) standing at US$407.8 billion overseen by a population of 3,900 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of global AUM was almost 25% and currently it still remains below that level at 21.4%.

Asset Flows Update For the Month of August 2013

September 2013 | Eurekahedge


Hedge funds posted slightly negative returns in August, amid increasing risk aversion in the markets. The Eurekahedge Hedge Fund Index was down 0.23% during the month as global markets reverted to ‘risk-off’ mode amid fears of another war in the Middle East and speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index was down by 2.26 % during the month.

Hedge Fund Performance Commentary for the Month of August 2013

September 2013 | Eurekahedge


Hedge funds witnessed slightly negative returns in August amid increased risk aversion in global markets during the month. The Eurekahedge Hedge Fund Index was down 0.23% outperforming global stock indices as the MSCI World Index declined by 2.26% in August.

2013 Key Trends in Asian Hedge Funds

September 2013 | Eurekahedge


Against the backdrop of an increasingly uncertain regional macroeconomic situation, the Asian hedge fund industry has shown remarkable resilience in 2013. The Eurekahedge Asia Hedge Fund Index is up 7.77% July year-to-date, with the total assets under management (AUM) of the industry currently standing at US$139.0 billion managed by a population of 1,303 hedge funds.

Asset Flows Update For the Month of July 2013

August 2013 | Eurekahedge


Hedge funds were back in the black in July as global markets swung upwards on the back of reassuring announcements from the US and European central banks. The Eurekahedge Hedge Fund Index gained 1.02% during the month bringing its year-to-date return to 3.54%. The MSCI World Index was up by 4.41% during the month.

Hedge Fund Performance Commentary for the Month of July 2013

August 2013 | Eurekahedge


Hedge funds returned to their winning ways in July as global markets bounced back from a retreat in June amid positive announcements by central banks. The Eurekahedge Hedge Fund Index was up 1.02% during the month and the MSCI World Index was up by 4.83% in July.

2013 Key Trends in North American Hedge Funds

August 2013 | Eurekahedge


The North American hedge funds industry has witnessed robust growth in 2013 with the total assets under management (AUM) breaching the US$1.3 trillion mark for the first time in May, raising the region’s share of global AUM to almost 70%. With strong launch activity since 2009, the total fund population has also reached the highest level on record with the total number of funds standing at 4891.

Is it Time to Revisit Your Hedge Fund Structure?

August 2013 | Sean Dailey, Chadbourne & Parke LLP


A typical “master-feeder” private investment funds structure uses a combination of corporate entities, including companies, limited partnerships and/or limited liability companies. Investment managers should consider the consequences associated with choosing one form instead of another early in the structuring process.

Asset Flows Update for the Month of June 2013

July 2013 | Eurekahedge


Hedge funds witnessed negative returns in June, bringing an end to their seven month winning streak since November 2012. The Eurekahedge Hedge Fund Index was down 1.45% during the month as global markets reverted to ‘risk-off’ mode amid speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index was down by 3.10 % during the month.

Hedge Fund Performance Commentary for the Month of June 2013

July 2013 | Eurekahedge


Hedge funds recorded negative returns in June ending their seven month winning run, as global markets witnessed broad based declines during the month. The Eurekahedge Hedge Fund Index was down 1.45% in June, outperforming most major underlying markets as the MSCI AC World Index declined 3.10%.

2013 Key Trends in Global Hedge Funds

July 2013 | Eurekahedge


After witnessing excellent performance-based gains in 2012, hedge funds continued the momentum in 2013 while also witnessing allocations from investors. The industry has attracted net asset inflows of US$56.9 billion during the first five months of 2013 in stark comparison to last year which saw net outflows of US$3.8 billion over the course of 12 months. The robust allocation activity along with continued positive performance has brought the AUM of the industry to US$1.88 trillion as at end-May 2013.

Hedge Funds Feel the Regulatory Pressure

July 2013 | Catherine Fitzsimons, Walkers Ireland


The hedge fund landscape changed dramatically in 2008 with assets under management in severe decline, the imposition of redemption gates, NAV suspensions and general restrictions on investor withdrawals being imposed on a scale that was previously unseen. As Lord Turner, Chairman of the UK Financial Services Regulatory Authority, noted, although specific national banking crises in the past have been more severe, none have had the global impact of the 2008 financial crisis.

Asset Flows Update for the Month of May 2013

June 2013 | Eurekahedge


Hedge funds witnessed negative returns in June, bringing an end to their seven month winning streak since November 2012. The Eurekahedge Hedge Fund Index was down 1.45% during the month as global markets reverted to ‘risk-off’ mode amid speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index was down by 3.10% during the month.

Hedge Fund Performance Commentary for the Month of May 2013

June 2013 | Eurekahedge


Hedge funds witnessed the seventh consecutive month of positive returns in May amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.32% during the month, while the MSCI World Index declined by 0.45% in May.

2013 Key Trends in European Hedge Funds

June 2013 | Eurekahedge


The European hedge fund industry has witnessed significant trends over the last 13 years, starting with a period of strong growth, a broad-based decline in the industry and a recovery phase. In 2000 there were less than 500 European hedge funds with total assets under management (AUM) of US$39 billion. Over the next seven years the total number of funds increased tremendously to cross the 3,000 mark while AUM increased nearly twelvefold to reach a maximum of US$472.8 billion by October 2007.

Asset Flows Update for the Month of April 2013

May 2013 | Eurekahedge


Hedge funds witnessed another month of positive returns in April amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.87% during the month, witnessing some trend reversals in the underlying markets. The MSCI World Index gained 2.02% during the month.

Hedge Fund Performance Commentary for the Month of April 2013

May 2013 | Eurekahedge


Hedge funds posted positive returns in April continuing their consecutive sixth month streak. The Eurekahedge Hedge Fund Index was up 0.87% during the month as most markets trended upwards. The MSCI World Index gained 2.02% in April.

2013 Key Trends in Latin American Hedge Funds

May 2013 | Eurekahedge


Since the start of the new millennium the Latin American hedge fund industry has witnessed tremendous growth, both in terms of number of funds and assets under management (AUM). During this time the total number of funds in the industry has increased from just over 100 to nearly 500 &ndash; an increase of 500% in the fund population, while AUM has witnessed even more impressive growth. As at end-2000 total AUM in Latin American hedge funds stood at US$2.6 billion, while this figure stands at US$62.3 billion as at end-March 2013.

Asset Flows Update for the Month of March 2013

April 2013 | Eurekahedge


Hedge funds posted positive returns in March amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.69% during the month as some risk aversion returned to the markets due to developments in Europe. Comparatively the MSCI World Index gained 1.76% during the month.

Hedge Fund Performance Commentary for the Month of March 2013

April 2013 | Eurekahedge


Hedge funds were up for the fifth consecutive month in March, a month that saw mixed returns in underlying market indices. The Eurekahedge Hedge Fund Index was up 0.69% during the month while the MSCI World Index finished with gains of 1.76%.

2013 Key Trends in Funds of Hedge Funds

April 2013 | Eurekahedge


Funds of hedge funds started 2013 on a positive note amid renewed risk appetite in global markets. The Eurekahedge Fund of Funds Index was up 2.19% in the first two months of the year as underlying single managers witnessed strong returns on the back of rallying global markets. On the flipside, the trend of net negative flows continued from previous years as multi-managers saw net outflows of more than US$25 billion.

2013 Key Trends in UCITS Hedge Funds

April 2013 | Eurekahedge


The UCITS hedge funds industry has witnessed tremendous growth over the last four years, both in the number of funds and in assets under management (AUM). As at the start of 2013 the total number of funds in the industry is estimated at 949 with AUM standing at US$215 billion.

Asset Flows Update for the Month of February 2013

March 2013 | Eurekahedge


Hedge funds posted marginally positive returns in February amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.22% during the month as some risk aversion returned to the markets due to political and economic developments in Europe. The MSCI World Index was down by 0.07% during the month.

Hedge Fund Performance Commentary for the Month of February 2013

March 2013 | Eurekahedge


After a strong showing in January on the back of resurgent risk appetite and rallying markets, hedge funds delivered a more muted performance in February as risk aversion increased during the month. The Eurekahedge Hedge Fund Index was up 0.22% during the month, outperforming the underlying markets which finished in negative territory. The MSCI World Index was down 0.07% in February.

2012 Key Trends in Global Hedge Funds

March 2013 | Eurekahedge


Hedge funds started off 2013 in a strong fashion with the industry delivering excellent returns and also attracting capital from investors. Currently the size of the industry stands at US$1.8 trillion and is set to hit its historical high in coming months.

Focus on BVI's Fund Regulation For Fund Managers

March 2013 | Philip Graham, Harneys


As a new ‘regulation light’ fund manager regime is launched in the British Virgin Islands, eligible fund managers can now count on a simpler application process. Philip Graham of Harneys provides an update.

Asset Flows Update for the Month of January 2013

February 2013 | Eurekahedge


Hedge funds started off 2013 in a positive fashion, posting excellent returns on the back of rallying markets globally. The Eurekahedge Hedge Fund Index was up 2.32% during the month, the strongest January return since 2006. Most underlying markets witnessed rallies as the MSCI World Index gained 4.66%.

Hedge Fund Performance Commentary for the Month of January 2013

February 2013 | Eurekahedge


Hedge funds posted excellent returns in January on the back of resurgent risk appetite and rallying equity markets globally. The Eurekahedge Hedge Fund Index was up 2.24% during the month, the strongest January return since 2006 while the MSCI World Index gained 4.66% in January. The capital weighted Mizuho-Eurekahedge Index was up 1.59%.

2012 Key Trends in Asian Hedge Funds

February 2013 | Eurekahedge


The Asian hedge fund industry started 2013 on much firmer ground than compared to previous years. The Eurekahedge Hedge Fund Index gained 9.79% in 2012 and total assets under management (AUM) in the industry were up during the year – currently standing at US$127.4 billion. The industry witnessed some tough times and fickle fortune since the financial crisis and over the last five years the sector has faced numerous challenges.

Asset Flows Update for the Month of December 2012

January 2013 | Eurekahedge


Hedge funds finished 2012 on a high note as global markets rallied at the year-end and many managers were able to capture the upside on offer. The Eurekahedge Hedge Fund Index was up 1.46% during the month, ending the year at a healthy 6.19%. Comparatively the MSCI World Index gained 2.22% during the month.

Hedge Fund Performance Commentary for the Month of December 2012

January 2013 | Eurekahedge


Hedge funds ended 2012 on a positive note and posted substantial gains across all regional and strategic mandates in December. The Eurekahedge Hedge Fund Index was up 1.46% during the month, bringing the 2012 yearly return to 6.19%. Comparatively the MSCI World Index gained 2.22%during the month and 13.55% in 2012. The capital-weighted Mizuho-Eurekahedge Top100 Index, which tracks the assets and performance of the largest 100 hedge funds, gained 6.20% in 2012.

2012 Key Trends in North American Hedge Funds

January 2013 | Eurekahedge


Over the last few years North American hedge funds have delivered a remarkable recovery from the global financial crisis, both in terms of assets under management (AUM) and performance. The industry has stood apart from hedge funds in other regions by attracting the greatest amount of assets since 2008 and also delivering four years of positive returns

Asset Flows Update for the Month of November 2012

December 2012 | Eurekahedge


Hedge funds witnessed a month of healthy returns and positive asset flows in November as the prevailing sentiment turned towards the risk-on mode. The Eurekahedge Hedge Fund Index was up 0.42% as most underlying markets witnessed trend reversals in the middle of the month. Comparatively, the MSCI World Index was up by 1.05% during the month. Total assets under management (AUM) increased by US$7.7 billion during the month, bringing the size of the industry to US$1.77 trillion. Hedge funds posted performance-based gains of US$1.8 billion as most strategies were in the black in November. Net positive asset flows were also witnessed as investors allocated net US$5.9 billion to the industry.

Hedge Fund Performance Commentary for the Month of November 2012

December 2012 | Eurekahedge


Hedge funds finished November in the black with marginal gains amid an environment of heightened volatility during the first half of the month, and trend reversals across many sectors in the last two weeks. The Eurekahedge Hedge Fund Index was up 0.42% in November bringing its year-to-date (YTD) figure to 4.39%.

2012 Key Trends in Latin American Hedge Funds

December 2012 | Eurekahedge


The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years and the Eurekahedge Latin American Hedge Fund Index has delivered impressive annualised returns of 15.62% since December 1999. Since the financial crisis of 2008, the industry has also posted a remarkable recovery in terms of assets and the total number of funds in the region.

Asset Flows Update for the Month of October 2012

November 2012 | Eurekahedge


Hedge funds ended their winning run in October with flat-to-slightly-negative returns for the month. The Eurekahedge Hedge Fund Index was down 0.19%1 during the month bringing its October year-to-date (YTD) return to 4.11%. The month witnessed a difficult trading environment for hedge funds as underlying markets witnessed trend reversals across a variety of sectors. The MSCI World Index2 dropped by 0.76% in October.

Hedge Fund Performance Commentary for the Month of October 2012

November 2012 | Eurekahedge


Hedge funds delivered flat to marginally negative returns during October, ending their three month winning streak. October witnessed the Eurekahedge Hedge Fund Index down by 0.19%1 with the year-to-date (YTD) return for the index standing at 4.11% and the MSCI World Index2dropping by 0.76%.

2012 Key Trends in Funds of Hedge Funds

November 2012 | Eurekahedge


The last ten years have witnessed significant trends in growth and performance within the funds of hedge funds industry. At the start of 2002 the industry consisted of approximately 1,000 funds with assets of less than US$100 billion. Over the next seven years the industry expanded at an incremental pace to reach its maximum size of US$826 billion by March 2008.

Hedge Funds in China

November 2012 | Ying White and Yin Ge, Clifford Chance


There is no comprehensive legal or universally accepted definition of ‘hedge funds’ in China. Generally, they share certain common characteristics, including: being privately offered; requiring investors to have a certain minimum net worth and/or level of financial sophistication; investing in equity securities, fixed income securities, derivatives, futures and other financial instruments; having a perpetual term; imposing liquidity restrictions on investors’ capital; pursuing absolute return rather than measuring investment performance in relation to a benchmark; compensating managers with incentive fees; allowing considerable flexibility in investment strategies; being highly leveraged; and being subject to limited regulatory supervision.

Asset Flows Update for the Month of September 2012

October 2012 | Eurekahedge


Hedge funds witnessed a month of healthy returns and positive asset flows in September as the prevailing sentiment remained in the risk-on mode. The Eurekahedge Hedge Fund Index was up 0.96%1 during the month while most underlying markets witnessed rallies on the back of monetary easing announcements by the ECB and the US Federal Reserve. The MSCI World Index was up by 2.29%2 during the month.

Hedge Fund Performance Commentary for the Month of September 2012

October 2012 | Eurekahedge


September was another winning month for hedge funds as the sector posted its third consecutive month of positive returns. The Eurekahedge Hedge Fund Index was up 0.96%1 in September and 2.59% for 3Q 2012 while September year-to-date the index is up 4.20%. Global markets rallied strongly during the month on the back of monetary easing steps taken by governments – the MSCI World Index was up by 2.29%2 during the month.

2012 Key Trends in European Hedge Funds

October 2012 | Eurekahedge


European hedge funds have witnessed a challenging investment environment over the last two years amid heightened volatility, recessionary pressures and concerns over the European sovereign debt situation. While facing increased regulations from governments, the industry also saw net redemptions by investors in 2011 and 2012. The region’s hedge funds have adapted to the changed landscape through implementing various changes and as of end-September 2012 the Eurekahedge European Hedge Fund Index remains in positive territory for the year with gains of 4.48%.

Hedge Funds Must Embrace the New Communications Landscape Post-JOBS Act

October 2012 | Nick Lawler, Intermarket Communications


In anticipation of the SEC’s final rulemaking on the JOBS Act, the hedge fund industry is preparing for what are expected to be landmark changes. With the elimination of the prohibition against general solicitation and advertising, hedge funds will now have the ability to openly communicate with investors and the broader public. But to what extent will these changes affect the way hedge funds currently do business? And who will these changes benefit? The industry seems to have taken a wait-and-see approach since the President signed the Act into law in April.

Asset Flows Update for the Month of August 2012

September 2012 | Eurekahedge


Hedge funds were up for the second month running in August, amid positive movements in underlying markets. The Eurekahedge Hedge Fund Index was up 0.63%1 during the month, bringing its year-to-date (YTD) return to a healthy 3.16%. Comparatively the MSCI World Index gained 1.64%2 on the back of increasing prospects of quantitative easing and positive US economic data – with its YTD gain standing at 7.79%.

Hedge Fund Performance Commentary for the Month of August 2012

September 2012 | Eurekahedge


Hedge funds posted another month of positive returns for August as the Eurekahedge Hedge Fund Index gained 0.63%1 during the month. Market sentiment was optimistic for most of the month with prospects for QE3 increasing, positive signals from the Euro zone and stronger US economic data. The MSCI World Index was up by 1.64%2in August.

2012 Key Trends in Asian Hedge Funds

September 2012 | Eurekahedge


Asian hedge funds have witnessed tough times since 2008 and have faced numerous challenges over the last two to three years. The industry saw tremendous growth between 2000 and 2007, with the number of funds increasing eight-fold and total assets under management (AUM) growing by nearly 800%. By end-2007 the size of the Asian hedge fund industry stood at US$176 billion managed by 1200 managers.

Hedge Funds and Data Protection

September 2012 | Anthony Murray, Murray LLP


Hedge funds are increasingly subject to international and local data protection regulations. The amount of personal data held by hedge funds and service providers continues to grow. As obligations to collect data increases with new regulations such as the U.S. Foreign Account Tax Compliance Act (FATCA), hedge fund managers and other service providers must pay attention to data protection laws and regulations.

Strategic Hedge Fund Planning

September 2012 | Hannah M. Terhune, Capital Management Services Group


Creating a hedge fund to protect and manage your assets or the assets of others for a fee is a practical way to earn a living. Successful hedge funds continue to attract the wealthy, the working not-so-wealthy, businesses, and pension funds looking for better investment options. Despite recent law changes, the United States still offers a favourable environment for smaller hedge fund startups. The purpose of this article is to highlight key U.S. hedge fund development and planning issues of interest to hedge fund sponsors worldwide.

Asset Flows Update for the Month of July 2012

August 2012 | Eurekahedge


Hedge funds ended their longest losing streak since 2008 with positive returns of 1.10%1 in July as managers captured gains from trends across various asset classes. July saw the first month of positive returns since February and the Eurekahedge Hedge Fund Index remained in positive territory for the year – up 2.57% July year-to-date (YTD). In comparison the MSCI World Index was up 1.05%2in July and 5.47% for the year.

Hedge Fund Performance Commentary for the Month of July 2012

August 2012 | Eurekahedge


Hedge funds rebounded strongly in July after four months of negative returns – the Eurekahedge Hedge Fund Index rose 1.10%1 bringing its year-to-date (YTD) gain to a healthy 2.57%. The year’s performance has weathered European sovereign debt woes, tensions in the Middle East and the dominant risk aversion from a slowdown in the global economy. After the rally in July, managers may find themselves with a fresh perspective of global markets as they continue to work towards exceeding their high water marks and hit their return targets for the rest of the year.

2012 Key Trends in North American Hedge Funds

August 2012 | Eurekahedge


Amid the uncertainty plaguing global markets and the broader financial industry, North American hedge funds have stood out as one of the few sectors that have witnessed growth and the industry maintains a healthy outlook for the future. Even among the global hedge fund industry North American managers have emerged stronger from the financial crisis of 2008 to 2009 with the number of funds at an all-time high and assets under management (AUM) touching historically high levels.

Historic Opportunities for Foreign Hedge Fund Managers in Mainland China

August 2012 | Effie Vasilopoulos, Joseph Chan and Scott Peterman, Sidley Austin


The Shanghai Municipal Government Financial Services Office (FSO) is preparing to launch the Qualified Domestic Limited Partner Program (QDLP), a pilot program that will permit qualifying foreign hedge funds to raise RMB-denominated funds in mainland China. Under current law, domestic investors are not permitted to invest in foreign hedge funds without certain government approvals that are difficult to secure. The new QDLP measures are significant in that they will, for the first time, open the China market to fundraising by foreign hedge fund managers. Following implementation, QDLP is expected to have a major impact on international fund managers that are interested in China’s sizeable institutional market.

Asset Flows Update for the Month of June 2012

July 2012 | Eurekahedge


Hedge fund returns for June were in the red for the fourth consecutive month making it the longest running losing streak for the industry since 2008. The Eurekahedge Hedge Fund Index was down by 0.14%1 during the month while comparatively the MSCI World Index was up 3.65%2 amid reversal in market trends and a month-end rally.

Hedge Fund Performance Commentary for the Month of June 2012

July 2012 | Eurekahedge


Hedge fund performance was flat to slightly negative in June as global markets witnessed several trend reversals during the month. The Eurekahedge Hedge Fund Index registered a marginal loss of 0.14%1 during the month, bringing its June year-to-date figure to 1.38%. In comparison the MSCI World Index was up 3.65%2 .

2012 Key Trends in Global Hedge Funds

July 2012 | Eurekahedge


The global hedge fund industry has witnessed two distinct phases during the first half of 2012: two months of strong performance and positive asset flows, followed by four months of negative performances and net outflows. Currently the size of the industry stands at US$1.75 trillion, managed by over 10,000 funds.

Hedge Fund Insights June 2012: Asian Hedge Fund Report

July 2012 | Melvyn Teo, BNP Paribas Hedge Fund Centre


We survey the Asian hedge fund landscape and shed light on the size, investment region, strategy, and performance metrics of funds operating in Asia.

Asset Flows Update for the Month of May 2012

June 2012 | Eurekahedge


Hedge funds were down in May amid heightened risk aversion and falling global markets. The Eurekahedge Hedge Fund Index lost 1.55% during the month while comparatively the MSCI World Index shed1 9.32% amid broad market declines in all regions.

Hedge Fund Performance Commentary for the Month of May 2012

June 2012 | Eurekahedge


Hedge funds witnessed their third consecutive month of negative returns in May as global markets registered large declines during the month. The Eurekahedge Hedge Fund Index dropped 1.55% in May but remained in positive territory for the year, up 1.91% May YTD. Comparatively the MSCI World Index shed 9.32% in the same month.

2012 Key Trends in European Hedge Funds

June 2012 | Eurekahedge


Among all the regions in the global hedge fund industry, Europe has witnessed the most dramatic changes over the last five years. At the start of the new millennium the total assets under management (AUM) in the industry were only US$39 billion. Over the next seven years this figure increased nearly twelvefold to reach a maximum of US$472.8 billion by October 2007, while the number of funds also crossed the 3,000 mark by this time.

The Billion Dollar Interview: Adam Levinson, Fortress Investment Group

June 2012 | Eurekahedge


Fortress Investment Group manages US$47 billion in variety of strategies, primarily focused on alternatives. Two hedge fund strategies – Fortress Asia Macro Fund and Fortress Convex Asia Funds are run out of Singapore.

Aircraft Finance — A New Opportunity for Private Equity and Hedge Funds?

June 2012 | Michael C. Mulitz, Daniel J. Hartnett, Willys H. Schneider and Dr. Thomas A. Jesch, LL.M., Kaye Scholer


According to the Federal Aviation Administration’s ? ‘FAA Aerospace Forecast (Fiscal Years 2011–2031),’ the commercial air carrier industry will grow by a remarkable 3.7% over the next five years. System capacity in available seat miles – the overall yardstick for how busy aviation is on a global scale – will increase 4.5% in 2011 and is expected by the FAA to grow thereafter at an average annual rate of 3.6% through 2031.

May 2012 Asset Flows Update

May 2012 | Eurekahedge


Hedge fund returns were flat to slightly negative in April as most regions and strategies witnessed marginal movements during the month. As managers provided downturn protection amid declining markets globally, the Eurekahedge Hedge Fund Index was down 0.17%1and the MSCI World Index declined 1.62%.

May 2012 Hedge Fund Performance Commentary

May 2012 | Eurekahedge


The Eurekahedge Hedge Fund Index was down 0.17%1 in April; a month that saw risk-aversion return to global markets. Most regional mandates provided downside protection to their investors and outperformed the underlying market indices with the average hedge fund manager finishing the month ahead by 1.45%. The MSCI World Index declined 1.62%2 during the month.

2012 Key Trends in Latin American Hedge Funds

May 2012 | Eurekahedge


Amid an environment of increasing uncertainty in the markets, the Latin American hedge fund space has provided investors with continued growth and consistent performance. Since its inception in December 1999 the Eurekahedge Latin American Hedge Fund Index has gained 538.22%. The sector has also witnessed tremendous expansion in terms of fund population and assets under management (AUM). Over the last 12 years the number of managers increased from just over a hundred in 2000 to 480 as at end-March 2012, while AUM increased from US$2.7 billion to US$58.9 billion in the same time period.

Implications of the JOBS Act and STOCK Act on Hedge Funds

May 2012 | Scott R. MacLeod, James S. Crenshaw, Christopher P. McHugh and Amy R. Rigdon, Holland & Knight


In early April 2012, President Obama signed into law two separate acts that will have a profound effect on hedge funds. The implications of these two new laws, the JOBS Act and the STOCK Act, are discussed below. The JOBS Act: allows advertising in hedge fund offerings and increases the permitted number of investors in certain funds

April 2012 Asset Flows Update

April 2012 | Eurekahedge


Hedge funds delivered a flat-to-marginally negative performance in March as the Eurekahedge Hedge Fund Index dropped 0.18%1 for the month. Global markets witnessed divergent trends as US economic data continued to be positive, although Europe and Asia saw some declines and the MSCI World Index gained 0.39%

April 2012 Hedge Fund Performance Commentary

April 2012 | Eurekahedge


After witnessing the best start to a year since 2000, in terms of performance, hedge funds paused for a breather in March 2012, delivering a marginally negative performance. With the exception of the US, most markets across the globe registered declines and the Eurekahedge Hedge Fund Index dipped 0.18%1 in March with the MSCI World Index up by 0.39% in March.

2012 Key Trends in Funds of Hedge Funds

April 2012 | Eurekahedge


Funds of hedge funds started 2012 on a positive note witnessing the strongest January to February performance in six years. The Eurekahedge Funds of Hedge Funds Index was up 3% in the first two months of the year as underlying single managers delivered their best start to a year since 2000. On the flipside, the trend of net negative flows continued from 2010 and 2011 as multi-managers saw net outflows of over US$20 billion.

2012 Key Trends in UCITS Hedge Funds

April 2012 | Eurekahedge


UCITS hedge funds have witnessed significant growth since 2007 as managers have continued to attract investment interest from insurance companies, pension funds and other institutional investors. As illustrated in figure 1, assets in UCITS compliant hedge funds have expanded nearly threefold with 912 managers overseeing US$190 billion of capital as at end-February 2012.

Key Issues for Managers of Offshore Hedge Funds Launching Alternative UCITS

April 2012 | Mark Browne, Mason Hayes & Curran


Recognition of ‘UCITS’ as a global brand for funds continues to go from strength to strength. In the years following the introduction of the potential for such funds to take advantage of additional investment options more typically associated with the alternative industry and hedge funds (in particular further to the ‘UCITS III’ regulatory

March 2012 Asset Flows Update

March 2012 | Eurekahedge


Hedge funds witnessed another month of strong returns in February as upbeat sentiment dominated global markets. Optimism about the European debt situation and strengthening global economy fuelled rallies in the underlying markets evident in the Eurekahedge Hedge Fund Index and MSCI World Index1 gains of 2.05% 2and 4.55% respectively during the month.

March 2012 Hedge Fund Performance Commentary

March 2012 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 2.05% in February as optimism about the European debt situation and strengthening global economy fuelled rallies in the underlying markets. The MSCI World Index increased 4.55%2 as investor sentiment remained positive for the second month running.

2011 Key Trends in Global Hedge Funds

March 2012 | Eurekahedge


Global hedge funds witnessed remarkable and divergent trends in 2011, delivering negative performance but also attracting net positive asset flows for the year. As at end-December 2011, the total size of the industry stood at US$1.7 trillion while the Eurekahedge Hedge Fund Index finished the year in negative territory with a decline of 4.02%

Hedge Fund Interview with Vincent Lam, Chief Investment Officer of VL Asset Management Company

March 2012 | Eurekahedge


VL Asset Management, founded in January 2009, is a Hong Kong-based investment firm licensed by the Securities and Futures Commission (SFC) of Hong Kong. In its team of eight, four are investment professionals with complementary skills across fund management, equity research, equity trading, journalism and company audit

Hedge Fund Terms — The Need to Stop Self-Fulfilling Standards and The Importance of Mindfulness

March 2012 | James Tinworth, Stephenson Harwood


Some terms in hedge fund documentation have existed, and been accepted, as ‘market standard’ for years. This article briefly considers a few of the more fundamental of these terms and explores whether new standards need to be found that strike a better balance between the investor, the manager and the fund.

The Use of Side Letters to Limited Partnership Agreements

March 2012 | Rob Blackstein and Myron Dzulynsky, Gowlings


A number of private equity funds and hedge funds are structured as limited partnerships that are governed by the terms of a limited partnership agreement (an ‘LPA’). A recurring theme in private equity fund investing is the use of ‘side letters’ between individual limited partners and the general partner of the fund. Side letters can range in scope from administrative matters to providing substantive rights to limited partners. Questions and issues inevitably arise as to the type of provisions that can be included in a side letter (which, in most cases only benefit the recipient of the side letter) as opposed to being incorporated into the limited partnership agreement itself (which generally benefit all limited partners of the fund).

February 2012 Asset Flows Update

February 2012 | Eurekahedge


Hedge funds posted a remarkable rebound in January as global markets rallied on renewed risk appetite. The Eurekahedge Hedge Fund Index was up 2.10% during the month, making it the best start of the year since 2006. The MSCI World Index gained 4.96% driven by positive data from the US and Europe. The asset-weighted Mizuho-Eurekahedge Index was up 1.58% in January, while the Mizuho-Eurekahedge Emerging Markets Index gained an excellent 5.89% during the month.

February 2012 Hedge Fund Performance Commentary

February 2012 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 2.10%1 in January on the back of a strong resurgence in risk appetite, making it the strongest monthly return for the index since December 2010. The MSCI WorldIndex gained 4.96%2 as markets overcame lingering concerns about the European debt situation and posted strong rallies. The capital-weighted Mizuho-Eurekahedge Index was up 1.80% during the month.

2011 Key Trends in Asian Hedge Funds

February 2012 | Eurekahedge


The Asian hedge funds sector witnessed some mixed fortunes in 2011 with managers posting (on average) negative results for most of the year but also experiencing net positive asset flows. As at end-December 2011, the total size of the industry stands at US$124 billion managed by nearly 1300 funds.

Hedge Fund Manager Regulation: Singapore to Catch Up with Hong Kong

February 2012 | Rolfe Hayden and George Hankey, Simmons & Simmons


In the blizzard of increased regulation from the United States and European Union, in particular the Dodd Frank Wall Street Reform and Consumer Protection Act and the Alternative Investment Fund Managers Directive (AIFMD), Asia’s two competing international financial centres – Hong Kong and Singapore, have traditionally taken different approaches to the further regulation of hedge fund managers. In the former, since the enactment of the Securities and Futures Ordinance (SFO) in 2003, no exempt status has been available. In the latter, there has long been an exemption for hedge fund managers. In the Special Administrative Region, since the global financial crisis the licensing regime has remained unchanged while in the ‘Lion City’ the regulatory regime is undergoing fundamental reform

January 2012 Asset Flows Update

January 2012 | Eurekahedge


Hedge funds were down 0.23% in December as global markets continued to be volatile in the last month of 2011. The Eurekahedge Hedge Fund Index finished the year with losses of 4.15%, the second-worst return for the index since its inception in 2000. Hedge funds outperformed the underlying markets by 5.8% during the year however; the MSCI World Index1 was down 0.4% in December and 9.9% for the year.

January 2012 Hedge Fund Performance Commentary

January 2012 | Eurekahedge


Hedge funds recorded a -0.23% return in December amid volatile market conditions and trend reversals that persisted into the last month of 2011. The Eurekahedge Hedge Fund Index was down 4.15% for the year, making it the second worst yearly return on record. Hedge funds continued to outperform the MSCI World Index, which was down 0.40%1 in December and 9.9% for 2011. The outperformance was led by the larger funds as evident from positive figures posted by the Mizuho Eurekahedge Top 100 Index, which was up 1.87% in 2011.

2011 Key Trends in North American Hedge Funds

January 2012 | Eurekahedge


North American hedge funds witnessed another year of strong growth in 2011, despite a flat to slightly negative performance amid unhelpful market conditions. The Eurekahedge North American Hedge Fund Index registered a -1.13% return for the year, however the industry attracted US$55 billion in net positive asset flows from investors.

Building a Hedge Fund Industry in Korea: Issues and Concerns

January 2012 | Warren Park and Seonghak Ahn, Hana Institute of Finance


As evidenced by the draft amendment on local hedge funds and prime brokers that has recently been released for public review, Korea is on the verge of having its own homegrown hedge fund industry. Many of the overly restrictive regulations that had previously stifled the development of Korean hedge funds are set to be eliminated or eased, while other areas have been given greater clarity. Because of these positive steps, many industry participants are sanguine about the potential for the industry, but some of the optimism may be excessive. This article attempts to outline some potential pitfalls for the industry in its early stages and show how financial regulators and institutional investors must continue to play an important role in ensuring that the industry develops in a manner that is not only sustainable but that promotes financial system stability and investor protections.

Hedge Funds in Ireland

January 2012 | Mark Browne, Mason Hayes & Curran


Over the last 25 years, Ireland has earned a reputation as a leading domicile for internationally focused regulated investment funds. However in more recent years it has also grown to become the leading European jurisdiction for the establishment and servicing of alternative investment schemes and hedge funds in particular. Recent market statistics show that over 63% of European domiciled hedge funds currently use Irish legal structures while over 40% of global alternative investment funds (both Irish and non-Irish domiciled) are administered in Ireland.

December 2011 Asset Flows Update

December 2011 | Eurekahedge


The Eurekahedge Hedge Fund Index was down 0.87%1 in November as hedge funds provided significant downturn protection in a month marked by large declines and trend reversals. The MSCI World Index fell by nearly 10% during the course of the month and closed 3.22% lower at the end. Hedge funds also witnessed another month of net negative asset flows, with investors withdrawing more than US$9 billion in November.

December 2011 Hedge Fund Performance Commentary

December 2011 | Eurekahedge


Hedge funds ended November with marginal losses as the investment environment continued to be unpredictable. The Eurekahedge Hedge Fund Index was down 0.87%1 during the month amid larger declines in global markets, while the November year to date (YTD) figure fell to -3.78%.

2011 Key Trends in European Hedge Funds

December 2011 | Eurekahedge


After posting strong growth in 2009 and 2010, European hedge funds have faced some challenging times in 2011. The Eurekahedge European Hedge Fund Index was down 5.54% November YTD while assets under management (AuM); which had crossed the US$400 billion mark earlier this year, fell back to US$380 billion.

Multi-Manager or Direct: The Pros and Cons of Each Approach To Hedge Fund Investing in South Africa

December 2011 | Carla de Waal and Marius Kilian, Novare Investments


The most important initial decisions for an investor are whether a hedge fund allocation is suitable for their portfolio and, if so, what the size of the allocation should be. It would be prudent to obtain expert financial advice when making this decision. The next step is how to access the opportunity set of available hedge funds, and here investors can choose to invest directly in one or more single-manager hedge funds, or use the multi-manager approach and invest in a fund of hedge funds. A fund of hedge funds is a diversified portfolio of individual hedge funds.

November 2011 Asset Flows Update

November 2011 | Eurekahedge


Hedge funds were up 2.04% in October as markets reversed sharply from the downtrend seen in the previous two months. Better than expected economic data from the US, as well as moves by European leaders to recapitalise European banks and address the debt crisis, resulted in a surge of optimism among investors. The MSCI World Index gained 8.65% during the month which witnessed rallying markets across the regions. However, the hangover from August and September led to further outflows from the sector.

November 2011 Hedge Fund Performance Commentary

November 2011 | Eurekahedge


Hedge funds bounced back with strong positive performances in October after two months of negative returns in August and September. The Eurekahedge Hedge Fund Index rose 2.04%1 on the back of renewed optimism in the market and resurgent risk appetite. The MSCI World Index gained 8.65%2 amid moves to resolve the European debt crisis and better than expected economic data from the US. October YTD; the markets are down 7.60%3 while the Eurekahedge Hedge Fund Index is down 2.90% and the Mizuho-Eurekahedge Top 100 Index4 (asset weighted) remains in the black with a 2.61% return.

2011 Key Trends in Funds of Hedge Funds

November 2011 | Eurekahedge


The global fund of hedge funds industry has gone through turbulent times over the last four years. After growing at an incremental pace from 2003 to mid-2008, the industry was hit with excessive losses and widespread redemptions during the financial crisis. Since then, multi-managers have struggled to attract a significant amount of assets.

October 2011 Asset Flows Update

October 2011 | Eurekahedge


Hedge funds were down 2.69% in September; another month of highly volatile movements and broad declines across global markets. The MSCI World Index lost nearly 10% making September the fifth consecutive month of declines for the index. In this market environment, hedge funds were able to outperform the markets substantially. Even so, downbeat investor sentiment resulted in net negative asset flows.

October 2011 Hedge Fund Performance Commentary

October 2011 | Eurekahedge


Hedge funds outperformed global markets by 7.29% in September as the Eurekahedge Hedge Fund Index ended the month with a loss of 2.69%. Market movements were dominated by daily swings while the broad direction remained downwards sloping through the month, creating difficult trading conditions for managers. The MSCI World Index declined 9.98%, exhibiting the worst performance since October 2008 while the S&P GSCI Total Return Index declined by 12.17%.

2011 Key Trends in Asian Hedge Funds

October 2011 | Eurekahedge


Asian hedge funds have witnessed remarkable growth over the last decade in terms of both fund population as well as assets under management (AuM). As at August 2011 the total AuM in Asian hedge funds stood at US$135 billion; nearly six times that as of end-2000 while the number of funds increased more than six fold in that same period.

2011 Key Trends in UCITS III Hedge Funds

October 2011 | Eurekahedge


UCITS III hedge funds have continued to post significant gains through 2011, both in terms of assets under management (AuM) and the total number of funds. As at end-August 2011 we estimate there to be 740 unique managers1 with assets of nearly US$200 billion.

October Interview: Richard Williams of Caliburn Capital Partners

October 2011 | Eurekahedge


Caliburn Capital Partners is a thematic fund of hedge fund manager, founded in early 2005 with institutional backing of US$25 million and managed by a team of five seasoned investment professionals with 125 years combined experience of successfully managing hedge funds, funds of hedge funds and investment banking prop trading teams.

September 2011 Asset Flows Update

September 2011 | Eurekahedge


The Eurekahedge Hedge Fund Index fell 2.13% in August amid heightened volatility in global markets and increased risk aversion. Despite the negative returns, managers delivered significant outperformance and downturn protection in a highly volatile environment. The MSCI World Index fell 7.70% as market sentiment turned bearish, marked by global markets changing directions frequently throughout the month. Hedge funds were able to deliver the 5.57% outperformance against the MSCI World Index, as the sector continued to attract assets, albeit marginally.

September 2011 Hedge Fund Performance Commentary

September 2011 | Eurekahedge


Hedge funds surpassed global equity markets in August as the Eurekahedge Hedge Fund Index ended the month down 2.13% but with notable loss mitigation, outperforming the MSCI World Index2 by 5.57%. Challenging market conditions, lacklustre investor sentiment, the S&P credit downgrade of US Treasuries, as well as European debt worries were the main issues in the month as the MSCI World Index fell 7.7%. All major regional equity exchanges finished the month deep in the red with European bourses witnessing the largest losses as the MSCI Europe Index declined 10.47%. CTA and macro hedge funds capitalised on volatile markets and made net gains for the month of 0.08% and 0.19% respectively.

2011 Key Trends in Latin American Hedge Funds

September 2011 | Eurekahedge


The Latin American hedge fund space has seen remarkable growth over the past decade. As of July 2011, the number of funds was nearly four times that as of end-2000, while assets over the same period recorded an increase over 23-fold. There are currently 442 operational hedge funds, managing over US$64 billion in assets.

2011 Key Trends in Islamic Funds

September 2011 | Eurekahedge


Over the last 10 years Shariah compliant funds have seen significant growth, both in terms of the number of funds as well as assets under management (AuM). Rapid developments in the Islamic finance industry, have led to an increasing number of Shariah compliant funds employing different strategies and investing across new asset classes, representing the progress and advances made in the Islamic finance sector. In this report we discuss the key trends observed in the Islamic funds industry since 2000.

Large Start-ups Raise Money More Easily but Perform Worst

September 2011 | Siewling Lay and Peter Douglas, GFIA Pte Ltd


The size of assets under management (AUM) is one of the more common factors many investors use in their initial screening process to come up with a preliminary shortlist of investable funds. Some investors, in particular the larger ones, might be constrained by their necessarily large ticket size, resulting in them only looking at funds above a minimum AUM. Others may be concerned about the costs associated with, and sustainability of, a fund with a small asset size.

August 2011 Asset Flows Update

August 2011 | Eurekahedge


Hedge funds posted another month of outperformance in July with the Eurekahedge Hedge Fund Index gaining 0.44%1 during the month. The industry also continued to attract capital for the eighth consecutive month while managers in all regions outperformed their respective underlying market indices. The MSCI World Index2 declined by 2.59% during the month due to concerns of the global economic recovery, the European debt crisis and the US debt ceiling situation.

August 2011 Hedge Fund Performance Commentary

August 2011 | Eurekahedge


The Eurekahedge Hedge Fund Index gained 0.44% in July; a month marked by high risk aversion arising from uncertain macroeconomic conditions, the ongoing debt crisis in Europe and the drawn out political debate in America regarding the US debt ceiling. Hedge funds were able to provide substantial downturn protection amid these conditions while global markets were mostly down during the month as the MSCI World Index declined by 2.59%.

2011 Key Trends in Global Hedge Funds

August 2011 | Eurekahedge


Despite an environment of increasing uncertainty in the markets, the global hedge funds sector has witnessed some strong trends in the first half of 2011. Chief among these trends: the industry attracted record inflows in the first 6 months of the year. As of end-June 2011, the size of the industry currently stands at US$1.81 trillion.

View from the Cayman Trenches

August 2011 | Paul Scrivener and Jonathan Fitzgibbons, Solomon Harris


All involved with Cayman’s hedge fund industry have ‘lived in interesting times’ over the past few years. What developments have there been and how do things stand now? Paul Scrivener and Jonathan Fitzgibbons give their insight ‘from the trenches’.

July 2011 Asset Flow Update

July 2011 | Eurekahedge


Global hedge funds were down for the second month running as the Eurekahedge Hedge Fund Index declined 1.22% in June and was flat to slightly positive for the first half of 2011. Comparatively, the MSCI AC World Index was down 1.88% in June and up 1.05% year to date (YTD).

July 2011 Hedge Fund Performance Commentary

July 2011 | Eurekahedge


Hedge funds were down 1.22% in June, ending the 1H 2011 with marginal returns of 0.33%. The month was marked by trend reversals in the markets and changes in investor risk appetite, which was the prevalent theme throughout 2Q 2011. However, hedge funds outperformed the underlying markets – the MSCI World Index saw declines of 1.88% for the month.

2011 Key Trends in North American Hedge Funds

July 2011 | Eurekahedge


The North American hedge fund industry has witnessed some significant trends since year 2000. At the turn of the millennium, the sector accounted for more than 84% of the global hedge fund industry with US$258 billion in assets managed by 1,815 managers. Over the next eight and a half years, the sector witnessed exponential growth with assets under management peaking in June 2008 at US$1.247 trillion – an increase of nearly 500%. The fund population also increased significantly to cross 4,600 funds over the same period.

The Billion Dollar Interview: Michael Coleman

July 2011 | Eurekahedge


Mr Coleman, together with his partner Doug King, founded Aisling Analytics in 2004, a Singapore-based commodity focused hedge fund manager. Aisling's flagship product is The Merchant Commodity Fund which launched in June 2004. A proprietary commodity trader since starting work in 1982, Mr Coleman worked for Cargill for 19 years in a variety of commodity trading and trading management positions. In 2001, Mr Coleman in conjunction with Marubeni founded U Derivatives where he was Chief Operating Officer until April 2004. Mr Coleman has been based in Singapore since 1984. A UK citizen, Mr Coleman was born in St. Helens Lancashire and is a Director of St. Helens Rugby League Football Club. He studied at Exeter College Oxford where he attained a BA in Natural Science (Geology).

UCITS IV — Rules of Conduct and the Challenges facing Management Companies and Self-Managed Investment Companies

July 2011 | Elaine Keane, Maples and Calder


Under the auspices of UCITS III, management companies (“ManCos”) and self-managed investment companies (SMICs) have been organised and maintained in accordance with the requirements of the Management Directive (Undertaking for Collective Investment in Transferable Securities Directive 2001/107) such that the board of directors are required to carry out eight key functions, being: decision taking, monitoring compliance, risk management, monitoring investment performance, financial control, monitoring capital, internal audit and supervision of delegates in the course of their management of the relevant UCITS.

June 2011 Asset Flows Update

June 2011 | Eurekahedge


Hedge funds were down 1.24% in May, ending a 10 month winning run for the industry. However managers in all regions outperformed their respective underlying market indices, as the MSCI World Index declined by 2.52% during the month. Additionally, the industry continued to attract capital from investors for the sixth consecutive month, despite a spike in risk aversion.

June 2011 Hedge Fund Performance Commentary

June 2011 | Eurekahedge


Hedge fund returns were negative during May as sudden trend reversals and an environment of increased volatility effected performance. The Eurekahedge Hedge Fund Index was down 1.24%1during the month, against the backdrop of a 4.75% increase in the VIX and a 2.52% decline in global equities, as measured by the MSCI AC World Index2. Although this was the first negative month for hedge funds since June 2010, the average return of -1.24% can be considered as an outperformance to the underlying markets which were down by more than twice as much.

2011 Key Trends in European Hedge Funds

June 2011 | Eurekahedge


Over the last few years no other sector of the global hedge funds industry has witnessed greater change than European hedge funds. The region witnessed exponential growth in the five years between 2002 and 2007, reaching a maximum size of US$472.8 billion by October 2007 with the total number of funds crossing the 3000 mark. However the industry saw its asset base reduce drastically during the global financial crisis, losing nearly 40% of the assets between January 2008 and March 2009. In this report we analysed the main trends observed over the last five years in European hedge funds, and as a special feature we explore the growth of UCITSIII hedge funds in the post-financial crisis world.

May 2011 Asset Flow Update

May 2011 | Eurekahedge


Hedge funds continued to attract capital from investors in April with strong performance adding to gains in total assets under management. The Eurekahedge Hedge Fund Index was up 1.58% through April – a month marked with strong returns among underlying hedge fund strategies. The MSCI World Index was up 1.84% during the month.

May 2011 Hedge Fund Performance Commentary

May 2011 | Eurekahedge


Hedge funds delivered another month of strong returns aided by favourable market conditions in April 2011 and rallies in underlying markets. The composite Eurekahedge Hedge Fund Index, which tracks the performance of nearly 2800 hedge funds, advanced 1.58% in April, bringing its 2011 year to date (YTD) return to 2.84%. Global equities, as represented by the MSCI World AC Index, gained 1.84% in the same month in the face of reduced risk aversion and improved earnings fundamentals.

Key Trends in Funds of Hedge Funds

May 2011 | Eurekahedge


The global fund of hedge funds industry witnessed some very strong trends over the last decade, in terms of size and population as well as different aspects of the industry’s make-up. After growing at an incremental pace in the 2003 to mid-2008 period, the size of the industry reached US$826.2 billion in March 2008. However excessive losses and widespread redemptions, triggered by the global financial crisis and some high profile frauds, reduced total assets under management substantially and by July 2009 industry assets fell to US$433.7 billion.

April 2011 Asset Flows Update

April 2011 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 0.15%1 in March, with managers also witnessing strong asset flows of US$13.9 billion from investors. It was, however, a turbulent month for the industry, marked with swings in risk appetite and mid-month trend reversals. Managers did well to navigate through the uncertainty and protect capital. Most market indices ended March in the red – the MSCI World Index2 was down 1.53% in the month.

Overview of 2010 Key Trends in Asian Hedge Funds

April 2011 | Eurekahedge


In relation to asset growth, performance, development of the service provider space and availability of new products and strategies, the Asian hedge fund industry has witnessed some remarkable trends over the last 11 years. At the start of 2000, there were less than 150 hedge fund managers that were investing in the region, including those based outside Asia, with a total AuM of less than US$20 billion.

Overview of 2010 Key Trends in UCITS III Hedge Funds

April 2011 | Eurekahedge


The interest among investors for UCITS III hedge funds surged in 2010 and has continued into the start of 2011. In this report, we monitor the developments in UCITS III hedge funds and touch upon some of the key aspects of the industry such as location of managers, strategies being employed as well as looking at some of the main performance trends.

Tapping Retail Demand for Hedge Funds

April 2011 | Michael Greaney and Olwyn Alexander, PricewaterhouseCoopers


With several publicly-offered hedge funds now exceeding US$1 billion in assets, the stage is set for more to be launched. Such is the demand for these products that many managers are overcoming long-held objections to them. Indeed, many now view them as a valuable way to diversify their investor bases.

Moving Offshore Funds Onshore - A Practical Guide

April 2011 | Mark Browne, Mason Hayes & Curran


Recent industry statistics show increased interest from alternative investment managers in basing their funds in onshore-regulated jurisdictions and as a result of this trend, Ireland recently overtook both Bermuda and the BVI as a domicile for hedge funds for the first time.

March 2011 Asset Flows Update

March 2011 | Eurekahedge


The Eurekahedge Hedge Fund Index advanced 1.09% in February, witnessing strong asset flows from investors. Managers capitalised on positive movements in underlying markets as upbeat sentiment pushed most regional indices upwards. The MSCI World Index gained 2.75% in the month.

March 2011 Hedge Fund Performance Commentary

March 2011 | Eurekahedge


Hedge funds were up for the eighth consecutive month in February amid healthy upward movement in most markets. The Eurekahedge Hedge Fund Index gained 1.09% during the month, bringing its year-to-date return figure to 1.27%. Market sentiment was buoyant through most of the month, leading to rallies in underlying markets – the MSCI World Index was up 2.75% in February.

Overview of 2010 Key Trends in Latin American Hedge Funds

March 2011 | Eurekahedge


The Latin American hedge fund sector is one of the fast growing segments of the global hedge fund industry. Over the last decade, the total number of hedge funds in the region has increased four-fold while the assets under management has grown by nearly 25 times. Currently, the size of the Latin American hedge fund industry stands at US$60 billion.

Consulting One – Team Working in Hedge Funds

March 2011 | Simon Kerr


There is no such thing as a perfect hedge fund – we are all trying. So in my role as a consultant to hedge fund portfolio managers (PMs), I am usually carrying out remedial work in some dimension. Sometimes, it can be about the positioning of hedge funds commercially, but usually, it is about what the portfolio managers are doing.

February 2011 Asset Flows Update

February 2011 | Eurekahedge


After ending 2010 with excellent results, the hedge fund industry slowed down in January and delivered a flat to slightly positive performance. The Eurekahedge Hedge Fund Index advanced 0.06% in January – a month marked with mixed returns among underlying strategies. The MSCI World Index was up 1.87% during the month.

February 2011 Hedge Fund Performance Commentary

February 2011 | Eurekahedge


Hedge funds were up for the seventh consecutive month in January, posting a marginal result of 0.06% for the month. Price movements in global markets were erratic in a month marked by various themes including improving economic fundaments in the US, political instability in the Middle East and rising inflationary pressure. The MSCI World Index was up 1.87% in January.

Overview of 2010 Key Trends in Global Hedge Funds

February 2011 | Eurekahedge


The global hedge fund sector continued its robust recovery from the global financial crisis throughout 2010. The industry has witnessed strong inflows since the second quarter of 2009, while hedge funds across all regions and strategies delivered positive returns for 2009 and 2010, with some indices posting record gains during this period. The Eurekahedge Hedge Fund Index was up 10.99% in 2010.

The European AIFM Directive – New Distribution Opportunities for Hedge Funds

February 2011 | Mark Browne, Mason Hayes & Curran


The European Parliament adopted the Alternative Investment Fund Managers Directive (the 'Directive') on 11 November 2010. The Directive contains new rules on the marketing of alternative investment funds in the EU by both European and non-European managers. This paper considers the impact of the provisions of the Directive, the opportunities afforded by this new European 'passport' for alternative funds and sets out the timeline for implementation of the new framework.

Conducting Proper Due Diligence on Third-Party Service Providers

February 2011 | Gabriel Kirkland


In a typical hedge fund structure, the board of directors will delegate the different functions necessary to the day-to-day activities of the fund to a selection of third-party service providers. In practice, the directors, too often, are selected at the very end of the fund's creation process and therefore usually have little to say in the final choice of the service providers. The hedge fund managers, especially the start-up ones, could gain by reversing the selection process on his head and bringing in the independent directors early on. By doing so, the manager will be able to benefit from the experience of the directors, demonstrate his commitment to strong corporate governance and bring some independence in the pre-launch phase.

What Are the Steps Required to Set Up a Forex Hedge Fund?

February 2011 | Forex Traders


Trading currencies has become a very popular investment activity over the past few years. Many have determined that the medium is either too high risk or too stressful for their tastes, but a relative few have invested the time required to learn the craft, have felt a personality match with the rigorous trading regimen, and have achieved a level of success and consistency over time. As the word has gotten out regarding their prowess, friends have come forward with funds to add to the pool. Success breeds growth, but at some juncture in the timeline, the successful trader may soon want to formalise the informal arrangements at hand.

January 2011 Asset Flows Update

January 2011 | Eurekahedge


Hedge fund assets under management grew by US$34.1 billion through December as managers ended 2010 on a high note. The Eurekahedge Hedge Fund Index posted a strong return of 3.01% in the month, bringing the yearly return to 10.93%. This marks an outperformance to underlying markets in the yearly return measure as the MSCI World Index delivered a 7.83% return for the year.

January 2011 Hedge Fund Performance Commentary

January 2011 | Eurekahedge


Hedge funds were up for the sixth consecutive month in December, posting a return of 3.01% for the month as global markets rallied at year's end on the back of an upbeat US market outlook. The Eurekahedge Hedge Fund Index posted double digit growth during 2010, ending the year with a gain of 10.93% and beating the underlying markets by more than 3.10%. The MSCI World Index was up 5.55% in December and 7.83% for the year.

Overview of 2010 Key Trends in North American Hedge Funds

January 2011 | Eurekahedge


The Eurekahedge North American Hedge Fund Index was up 13.33% during 2010 as the region’s hedge funds maintained their winning run. North American managers had posted record returns in 2009, and although 2010 was marked by high volatility and sudden swings in the markets, the funds continued to deliver consistent returns throughout the year. This was the third consecutive year that the region’s hedge funds outperformed those in other developed markets. Managers also attracted significant capital from investors in 2010, gaining US$60.4 billion in net positive asset flows – accounting for most of the US$70.6 billion allocated within the global industry during 2010.

December 2010 Hedge Fund Performance Commentary

December 2010 | Eurekahedge


Hedge funds were up for the fifth consecutive month as managers outperformed the underlying markets in November. The composite Eurekahedge Hedge Fund Index returned 0.40% in the month, bringing its year-to-date return to a healthy 7.72%. In contrast, the MSCI World Index2 fell 2.35% during a month of high volatility and sudden trend reversals, with its YTD November figure falling to 2.15%

Overview of 2010 Key Trends in European Hedge Funds

December 2010 | Eurekahedge


The European hedge fund industry grew at a rapid pace in the first seven years of the last decade, with assets increasing 12-fold to reach US$464.30 billion at the end of 2007. Over the same period of time, the total number of hedge funds in the region increased six times to cross the 3,000 mark. However, as the global economy went into recession in 2008, European hedge funds went through their worst year on record, suffering heavy losses and witnessing unprecedented redemption pressure. This trend continued into the first few months of 2009, with industry assets reaching a trough of US$293.60 billion in March 2009, falling below the US$300 billion mark for the first time since 2005.

Race for Returns

December 2010 | Luke Clancy, Pensions Insight


Yale University endowment manager David Swensen launched a blistering broadside at the practices institutional investors use to select hedge funds in an interview last year with the Wall Street Journal. Swensen described fund of hedge funds as "a cancer on the institutional investor world. They facilitate the flow of ignorant capital." His argument was that such funds are self-defeating; investors need to be in the top 10% of hedge funds to succeed and, with a fund of funds, they are likely to be excluded from the best managers.

Proposed EU Short Selling Disclosure Regulations Bad for Large HF Groups and the Market

December 2010 | Simon Kerr, Simon Kerr's Hedge Fund Blog


Proposed short selling disclosure regulations announced recently by the European Commission (EC) are too stringent and threaten market efficiency in a general sense. Specifically, implementation of the regulations as currently drafted would be very damaging for larger hedge fund groups.

Understanding Cloud Computing: Benefits and Challenges for Investment Firms

December 2010 | Bob Guilbert, Eze Castle Integration


With IT budgets tighter over the past two years, many hedge fund and investment firms have had to make changes to their businesses. Staff, systems and budgets continue to be closely monitored in an effort to reduce costs and increase efficiencies.

November 2010 Hedge Fund Performance Commentary

November 2010 | Eurekahedge


Hedge funds continued their winning streak through October, making it the fourth consecutive month of healthy returns. The Eurekahedge Hedge Fund Index was up 2.27% in October, bringing its year-to-date October return to a strong 7.33%, as the underlying markets continued their upward trend for the second month running. The MSCI World Index gained 2.77% in the month, up 2.69% for the year.

Overview of 2010 Key Trends in Funds of Hedge Funds

November 2010 | Eurekahedge


Global fund of hedge funds have witnessed a dramatic change of fortunes over the last two and a half years. The industry grew at a steady pace between 2003 and early 2008, with assets under management peaking at US$826 billion, before suffering considerable losses and widespread redemptions1amid the global financial crises.

Hedge Fund Interview with Wong Kok Hoi, Founder, Chairman and CIO of APS Asset Management Pte Ltd

November 2010 | Eurekahedge


Founded in 1995, APS provides fund management services specialising in Asia Pacific equity investments. APS is a fully independent firm owned 100% by its employees. Mr Wong Kok Hoi, founder, Chairman and CIO of APS, has more than 29 years of investment experience. APS has three teams of 24 investment professionals based in Singapore, China and Japan, managing three key products, ie, Asia ex-Japan, Greater China and Japan equities.

Hedge Funds and Analyst Optimism

November 2010 | Sung-Gon Chung and Melvyn Teo, Singapore Management University


We find that analysts are more likely to issue favourable recommendations for stocks predominantly owned hedge funds. Moreover, these optimistic recommendations translate into poorer stock performance over the next three to six months. Hedge funds take advantage of these flattering reports by concurrently offloading their stock holdings. Our results suggest that analysts are reluctant to downgrade stocks held by their most important clients.

October 2010 Hedge Fund Performance Commentary

October 2010 | Eurekahedge


Hedge fund returns were positive for the third consecutive month in September, up 3.37%, ending the quarter on a positive note. The 3Q2010 return for the Eurekahedge Hedge Fund Index was 5.21%, making it the best quarter so far in the year. The year-to-date September return now stands at a healthy 5.15%, still ahead of the MSCI World Index, which is marginally down at -0.08% YTD September.

Overview of 2010 Key Trends in Latin American Hedge Funds

October 2010 | Eurekahedge


2010 has seen the Latin American hedge fund industry emerge as one of the most dynamic sectors in the global hedge fund space. While performance and growth in most other hedge fund regions remained slow or registered marginal declines, Latin American hedge funds continued to provide consistent returns to their investors. The average Latin American manager has seen only two instances of marginally negative returns in the last 23 months. Figure 1a tracks the industry assets since January 2009.

2010 Key Trends in Islamic Funds

October 2010 | Eurekahedge


The rapid development of the Islamic fund industry over the last decade represents the progress and advances made in the Islamic finance sector. The primary goal of Islamic funds is to engage in 'ethical investing' into products and companies that are acceptable to the Islamic faith. As such, Islamic funds are wealth management vehicles that cater to investors who want exposure to capital markets inside a Shariah framework, which is the key distinguishing factor from other conventional funds.

The Spectrum of Investors for Latin American Hedge Funds

October 2010 | Ron Suber, John Quartararo, Patrick McCurdy and Victor Hugo Rodriguez, Merlin Securities


In the past several years, Latin American hedge fund managers have increasingly entered the competitive global race to win investment mandates. By and large, they have been successful.

Sign of the Times: Operational Due Diligence Takes Center Stage

October 2010 | Wesley Tellie and Alan Swersky, Duff & Phelps


In light of recent market turmoil and high-profile scandals, it is vital that investors verify that their hedge fund partners' businesses and operations adhere to the highest industry standards and best practices. Now, more than ever, investors are continually exploring new and more efficient approaches to determine which funds are worthy business partners.

Can Fund of Hedge Funds Managers Add Value in the UCITS Space?

October 2010 | Henrik de Koning, KdK Asset Management Limited


Over the past year, the market has been flooded by a great number of UCITS regulated funds managed by hedge fund managers. UCITS hedge funds are said to manage nearly US$ 100 billion with 980 funds globally. Another 125 funds were launched in the first five months of 2010, with total net inflows standing at US$ 12 billion.

Stock Exchanges Globally Engaging in ESG Issues

October 2010 | Elizabeth Dooley, Asia Asset Management


The Association for Sustainable & Responsible Investment in Asia (ASrIA) advocates that sustainable economic development is the only viable option for Asia, with SRI (sustainable and responsible investment) as a key market mechanism towards achieving this goal. ASrIA also points out that with growth of SRI in Europe and the US, SRI activity is growing in Asia and that despite total money under management in Asia of less than US$2.5 billion, this figure is increasing rapidly as SRI becomes incorporated into investment strategies around the region.

September 2010 Hedge Fund Performance Commentary

September 2010 | Eurekahedge


Hedge funds were up for the second month running as managers outperformed the underlying markets in August. The composite Eurekahedge Hedge Fund Index advanced 0.46% during the month, bringing the year-to-date August returns to 1.71%. The MSCI World Index, on the other hand, was down 3.69%, with its YTD August number falling to -7.51%.

2010 Key Trends in Asian Hedge Funds

September 2010 | Eurekahedge


The Asian hedge fund space, which includes funds that are either based in Asia or investing in Asia, has been one of the fastest growing sectors in the global hedge fund industry since 2000, both in terms of assets and number of funds. However, the industry has also gone through difficult periods and diverse phases. After witnessing tremendous growth in the first eight years of the decade, Asian hedge funds went through a lean period in 2008 and early 2009 amid the global financial downturn and widespread redemptions.

Overview of 2010 Key Trends in UCITS III Hedge Funds

September 2010 | Eurekahedge


The phenomenal growth in UCITS III hedge funds over the last few years has been one of the most interesting developments in the global alternative investment sector. Currently, the Eurekahedge UCITS III Hedge Fund Database lists 7752 UCITS III products, with another 500 to be added in the coming months. Furthermore, the Eurekahedge UCITS Hedge Fund Index, the industry benchmark and most widely used tracker in the sector, consolidates the monthly performance of 236 funds.

Are Hedge Funds Ready for SEC Registration?

September 2010 | Janaya Moscony, SEC Compliance Consultants


October 16, 2009 - We, at the SEC, are committed to pulling back the curtain on hedge fund operations and taking a close look at their activity. We are developing a variety of initiatives to do that, involving greater specialisation and expertise, improved technological tools to track and analyse trading, better coordination among regulators and law enforcement, new legislative initiatives, and other means to address these areas.

Hedge Fund Investment by Superannuation Funds

September 2010 | Craig Roodt, Australian Prudential Regulation Authority


While Australian superannuation funds were among the earliest globally to invest in hedge funds, the level of this investment has not increased at the same pace as in other jurisdictions. Given the recent developments in hedge fund practices and investment practices generally, it is opportune to examine superannuation fund investment in hedge funds, for the regulator to restate its expectations when hedge funds are part of a superannuation fund investment portfolio, and to review lessons from the global financial crisis.

Gulf Lessons

September 2010 | Jerilyn Klein Bier, FA Green


"To BP or not to BP?", a frequently asked question in recent months, was being debated in the socially responsible investment space long before the major oil company's spill in the Gulf of Mexico. Some SRI asset managers had already distanced themselves from the company given BP's fossil fuel focus, poor safety record and retreat from a previously strong commitment to sustainability.

July 2010 Hedge Fund Performance Commentary

August 2010 | Eurekahedge


Hedge funds bounced back with strong positive performances in July after flat to slightly negative returns in the previous two months. The Eurekahedge Global Hedge Fund Index, which tracks the performance of more than 2,500 hedge funds on an equally weighted basis, gained 1.47% in July, bringing the year-to-date figure back in positive territory to 1.20%. The MSCI World Index also posted strong gains of 5.65% with its year-to-date July measure at -2.94%.

2010 Key Trends in Global Hedge Funds

August 2010 | Eurekahedge


In our sixth monthly review of the global hedge fund industry, we revisit some of our previous analyses, such as strategic asset flows, distribution of new fund launches and performance comparisons, and also conduct new studies into areas such as average life span, survivorship and capital inflows into the different regions.

Hedge Fund Interview with Steve Gilboy, Michael Newlander and Jason Gilboy of GLL Investors

August 2010 | Eurekahedge


Founded in 1995, GLL Investors manages five multi-manager hedge funds – all of which have posted superb returns – while maintaining unusually low-risk profiles with little or no leverage. The largest and oldest fund, GLL Investors, LP, has recorded a 10.26% average annual return over 15 years with a beta of only 0.22. Since inception, GLL is up 287.29% net through June 2010 while the S&P 500 is up 124.42%. GLL Single Strategy, which we created in 1999, invests primarily in hedge funds that specialise in PIPEs (Private Investments in Public Equities).

After the Mulligan – An Asian Hedge Fund Perspective

August 2010 | Richard Johnston, Albourne Partners


Mulligan (games): when a player gets a second chance to perform a certain move or action. To some degree, the markets of 2009 and the start of 2010 make it seem that 2008 never happened. This is especially true in Asia where we have less of the structural issues that the Western economies suffer from, ie, high consumer debt, unemployment and deteriorating government balance sheets.

Hedge Funds: A Risk Manager’s Viewpoint

August 2010 | Frances Cowell, R-Squared Risk Management


Regulators on both sides of the Atlantic are seeking to protect investors with new regulation to capture all investment products, including hedge funds and absolute return funds that have, until now, been largely unregulated. Whatever the outcome, it is up to investors to satisfy themselves that the risks taken by their managers are justified by the expected returns. The key is to ask the right questions.

Where to Start: Managed Accounts or Hedge Fund?

August 2010 | James Bibbings, Turnkey Trading Partners


I am routinely asked about the advantages and disadvantages of starting a Commodity Trading Advisor (CTA) as opposed to a Commodity Pool Operator (CPO). This is a great question and one that all money managers interested in handling forex or commodity managed accounts should consider. If answered incorrectly, this question could literally ruin the chances for success as a CFTC registrant and NFA member. If that statement was not strong enough to peak interest, how about this one: a wrong decision in this space will likely cost thousands of dollars and countless hours of valuable time.

Socially Responsible Investments Earning Their Keep

August 2010 | Damon Taylor, Super Review


Superannuation funds are continuing to back responsible investment options, not just because of their commitment to underlying principles but because they are generating competitive returns. That is the assessment of the president of the Responsible Investment Association of Australia (RIAA), Duncan Paterson, who foresees continuing growth in the sector.

Why Invest Ethically?

August 2010 | Samantha Matthew, Glacier by Sanlam


The last decade has seen increased global awareness of environmental issues. It is because of this awareness that socially responsible investing (SRI) has become more visible and structured as a type of investment. The underlying rationale behind this type of investing is not only to maximise financial returns but to promote socially and environmentally sustainable development and growth.

June 2010 Hedge Fund Performance Commentary

July 2010 | Eurekahedge


Hedge fund returns were flat to marginally negative in June as most managers steered cautiously through volatile markets. The composite Eurekahedge Hedge Fund Index registered -0.59% returns for the month against the backdrop of a 3.56% drop in global equities and a sharp rise of risk aversion towards the end of the month (the Volatility Index on the Chicago Board of Options Exchange gained 37% from mid- to end-June).

2010 Key Trends in European Hedge Funds

July 2010 | Eurekahedge


While the European headlines in 2010 have been dominated by woeful tales of sovereign debt issues, the region’s hedge funds have been delivering their mandated results by providing superior downturn protection and outperforming the underlying markets. The Eurekahedge European Hedge Fund Index is up 0.25% June YTD while the MSCI Europe Index has lost 8.56% over the same time.

2010 Key Trends in SRI Funds

July 2010 | Eurekahedge


This report presents the findings of a study conducted by Eurekahedge analysts on more than 1,000 SRI funds. The aim of this research report is to find the aspects of the industry in 2010, such as where the funds are investing, which sectors and asset classes and what are the different criteria being employed.

Remote Control

July 2010 | Matthew Craig, Pensions Insight


In the last few years, hedge funds have become an integral part of the pension fund investment toolkit. Hedge funds can employ a wide range of investment strategies and the breadth of these approaches means that they can help diversify and give an 'absolute returns' flavour to investment portfolios.

May 2010 Hedge Fund Performance Commentary

June 2010 | Eurekahedge


Hedge funds were down in May amid sharp movements in global markets and a spike in risk aversion. The Eurekahedge Hedge Fund Index was down by 2.33% during the month as managers struggled with the volatility and unpredictable shifts in the markets, making it the worst month for the industry since October 2008. However, the sector’s year-to-date performance remains in the black, with the Eurekahedge Hedge Fund Index up 0.78% May year-to-date. In comparison, the MSCI World Index was down 9.91% in May, standing at -7.64 for the year so far.

2010 Key Trends in North American Hedge Funds

June 2010 | Eurekahedge


After delivering excellent results in 2009, North American hedge funds continued the positive trend through the first few months of 2010. The Eurekahedge North American Hedge Fund Index advanced 4.40% in the January - April 2010 period, carrying on the momentum from last year when the sector delivered the best returns on record by gaining 23.72%.

Hedge Funds Adapt to a New Reality

June 2010 | Arthur Tully, Ernst & Young


Hedge funds have weathered the storm of the financial crisis, but they must now compete in a much tougher marketplace. Legislators are preparing tighter regulation while investors are closely vetting every position they take. In order to thrive in this climate, hedge fund managers must change how they interact with stakeholders and how they manage risk and operations. The industry has already initiated major changes that are likely to continue, but the endgame is not yet in sight.

US Hedge Fund Managers Need Patience, Understanding to Attract Japanese Investors

June 2010 | Somer Hatano, FletcherBennett


Japanese interest in US-based hedge funds is projected to increase in the years ahead as Japanese institutional investors and pension managers, in particular, seek to achieve more robust portfolio returns. Japan's aging population, pressured by a low domestic interest rate environment and the need to meet obligations, will be among the main drivers of the pensions' investment activity.

Will the New Regulations Make Hedge Fund Investing Safer?

June 2010 | Gabriel Kurland, Hedge Fund Appraisal


The month of May has been full of twists and turns in the financial markets and at the regulatory level on both sides of the Atlantic. Europeans began the “hostilities” on 18 May with the approval, by the European Parliament, of the draft text of the new Alternative Investment Fund Managers (AIFM) Directive. The Americans followed suit on 14 May 2010, with the Senate passing the Restoring American Financial Stability Act of 2010, following the Wall Street Reform and Consumer Protection Act of 2009 (HR 4173), which the US House of Representatives passed in December 2009.

April 2010 Hedge Fund Performance Commentary

May 2010 | Eurekahedge


The global hedge fund industry delivered another month of outperformance in April, ending in positive territory as most global markets registered declines for the month. The composite Eurekahedge Hedge Fund Index, which tracks the performance of nearly 2,500 hedge funds across the world, advanced by 1.24%1 in April, bringing its 2010 year-to-date returns to a healthy 3.33%. Global markets, represented by the MSCI World Index, declined by 0.16% in April, with the April year-to-date figure of the index standing at 2.58%.

Hedge Funds and Mutual Funds Converge

May 2010 | Arjuna Sittampalam, EDHEC-Risk Institute


Convergence of mainstream asset management and alternative hedge funds has been much talked about for some years but has not been realised on any significant scale until recently. Several forces are accelerating the trend on both sides of the Atlantic.

Do Nice Investors Finish Last?

May 2010 | Carolyn Campbell, Emerging Capital Partners


While its roots date back to biblical times, socially responsible investing (SRI) has gained significant visibility within the stock market over the past three decades – an investment trend that began following the Vietnam War by those who did not want their money supporting companies or products that did not align with their core beliefs.

March 2010 Hedge Fund Performance Commentary

April 2010 | Eurekahedge


After a leisurely start to the year, hedge funds ended the first quarter on a high note as the composite Eurekahedge Hedge Fund Index advanced 2.53% in March, bringing 2010 year-to-date returns to 2.17%. The index, which has been tracking the performance of hedge funds since December 1999, is now at its highest level on record, with the average hedge fund annualised returns standing at 11.1%, outperforming the broader stock market indices’ (represented by the MSCI World Index) yearly returns of -1.67%.

2010 Key Trends in Latin American Hedge Funds

April 2010 | Eurekahedge


The Latin American hedge fund industry has seen tremendous growth in the last decade both in terms of performance and assets under management. Since its inception in December 1999, the Eurekahedge Latin American Hedge Fund Index has gained 422.8% while the number of Latin American hedge funds has also increased four-fold over this period. The growth in assets under management picked up incrementally after 2003, registering a three-fold increase from 2004 to 2007.

Hedge Fund Interview with Jiffriy Chandra, Managing Partner and CIO for Special Situations at Income Partners

April 2010 | Eurekahedge


Jiffriy Chandra tells us more about his investment platform that covers all asset classes in the Asian markets covering high grade and sovereign credit, high yield, special situation, distressed and restructuring opportunities, equities and macro fund products. Income Partners is a Hong Kong-based asset management company dedicated to the Asian emerging markets that provides independent asset management and investment advisory services to institutional, private and high-net-worth investors, foundations, pension funds and government agencies. Headquartered in Hong Kong with offices in Beijing and Singapore, we are authorised and regulated by the Hong Kong Securities and Future Commission and registered with the Japan Financial Securities Agency (FSA).

Post-Crisis: Hedge Funds, Custodial Risk And Prime Brokers

April 2010 | Ron Suber & Aaron Vermut, Merlin Securities


Prior to the most recent financial crisis, money managers understood the concept of counter-party and custodial risk, but it was not a priority. We were coming off a 25-year bull run in the financial markets during which the industry did not experience the failure of a single significant custodial bank. In addition, the broker-dealers that failed (eg, Drexel) were handled in such a way that custodial risk remained a non-issue.

UCITS Hedge Funds: Balancing Innovation and Investor Protection

April 2010 | Olwyn Alexander, Didier Prime and Robert Mellor, PricewaterhouseCoopers


Who would have thought a year ago, in the immediate aftermath of the credit crunch, that there would now be such a large number of UCITS hedge funds, encompassing almost the full range of investment strategies. There are not only relatively simple long/short equity funds but also an increasing number of more complex macro, arbitrage and commodity vehicles.

February 2010 Hedge Fund Performance Commentary

March 2010 | Eurekahedge


Hedge funds returned to positive territory in February after being marginally negative in the previous month. The composite Eurekahedge Hedge Fund Index, which tracks the performance of all hedge funds on an equally-weighted basis, was up by 0.59% on the back of mid-month trend reversals in the underlying markets.

Overview of 2009 Key Trends in Global Hedge Funds

March 2010 | Eurekahedge


Over the last decade, the global hedge fund industry has undergone exponential growth both in terms of assets under management and number of funds. Hedge fund assets hit their peak in June 2008 at US$1.95 trillion – a seven-fold increase since end-1999 – before declining due to drying-up liquidity, the collapse of some large financial institutions, tumbling equity markets and the resultant spike in risk aversion, which led to widespread redemptions.

Overview of 2009 Key Trends in UCITS III Hedge Funds

March 2010 | Eurekahedge


One of the key developments in 2009 has been the surge of interest in the UCITS III framework among alternative investment managers. Against the backdrop of the global recession and some major financial scandals, there have been increasingly vocal demands for greater transparency, risk management and regulations for hedge funds. In this situation, an increasing number of managers have started looking at the UCITS III platform as a way to not only meet the requirements of existing investors but also to market their funds to new clients who have traditionally been sceptical about, or unable to, invest in unregulated products while at the same time, utilise their unique alpha-generating strategies.

Coming to America

March 2010 | Zaki Abushal, HFMWeek


Driven by the prevailing threat of an AIFM regulatory clampdown, many European hedge funds are now looking westwards to access the rich institutional investor pickings in the US. But does the land of plenty have enough to go around? Europeans could learn a lot from their counterparts in the US on how to run a hedge fund business. It is no surprise that the vast majority of the 8,000 hedge funds worldwide operate from the US and of those, most can be found in New York.

Freedom versus Transparency?

March 2010 | Tim Sharp, Pensions Insight


For a while, hedge fund managers were the guys taking the blame for the financial crisis as banks plummeted amid short-selling. Once their bets turned out to be astute, we turned our attention to the bankers who broke their own institutions. But the spivs of Mayfair have not been forgotten in Brussels and the future of the hedge fund industry – at least in Europe – is at the mercy of European Union horse trading as politicians consider the directive on alternative investment fund managers.

Clean Oil?

March 2010 | Marla Brill, FA Green


There are two broad schools of thought about how people can invest in commodities in an environmentally friendly way. The first, practiced by many SRI fund managers, involves sorting through companies in industries such as mining and oil drilling to find those with the strongest environmental track records among their peers. The second group of investors view metal recyclers and alternative energy producers as the new commodity plays for the 21st century.

January 2010 Hedge Fund Performance Commentary

February 2010 | Eurekahedge


After delivering impressive returns through most of 2009, hedge funds registered a slight decline in January 2010 against the backdrop of heightened risk aversion and mid-month reversals in market trends. The Eurekahedge Hedge Fund Index shed 0.89%1during the month while markets across the world recorded sharp declines in the second half of the month.

Overview of 2009 Key Trends in Asian Hedge Funds

February 2010 | Eurekahedge


The Asian hedge fund sector grew at an exponential pace through the first eight years of the last decade before witnessing heavy redemptions in 2008 and early-2009 along with significant losses due to the financial downturn. The size of the region’s hedge fund industry peaked in December 2007, reaching US$176 billion; however, the combined effect of withdrawals and performance-based losses brought the assets under management down to US$105 billion in April 2009.

A Justifiable Optimism?

February 2010 | Dermot SL Butler, Custom House


For a while, hedge fund managers were the guys taking the blame for the financial crisis as banks plummeted amid short-selling. Once their bets turned out to be astute, we turned our attention to the bankers who broke their own institutions. But the spivs of Mayfair have not been forgotten in Brussels and the future of the hedge fund industry – at least in Europe – is at the mercy of European Union horse trading as politicians consider the directive on alternative investment fund managers.

A Fundamental Shift Onshore?

February 2010 | Peter Stapleton, Dillon Eustace


As we close out the last decade, many in the hedge fund industry will prefer to look forward rather than back to the tail end of the noughties. While some economic indicators show strong rebounds in performance by the end of 2009, the impact of the financial crisis was severe enough at the start of that year for the future of the entire industry to be called into question. Most hedge funds saw substantial falls in performance coupled with continuing investor redemptions.

Can Hedge Fund Strategies Really Be Offered via Absolute Return Funds?

February 2010 | Tim Sharp, Citywire


Supermarket chains have recently started trying to drive their customers to buy their own brand ranges by promising that they taste at least as good as famous brands. They just lack the fancy packaging. Fund management companies are trying to do the same with the launch of absolute return or UCITS III funds. Investment houses want investors to believe that they are getting more or less the same product as their hedge fund but without the mystique and risk of the Cayman Islands domicile.

December 2009 Hedge Fund Performance Commentary

January 2010 | Eurekahedge


The global hedge fund sector ended 2009 with a healthy performance in December. The composite Eurekahedge Global Hedge Fund Index, which tracks the performance of all hedge funds on an equally-weighted basis, gained 1.07% in the month, bringing the 2009 figure to 19.37% – the highest yearly gains on record since the bumper year of 2003.

Overview of 2009 Key Trends in Islamic Funds

January 2010 | Eurekahedge


The growth of Shariah-compliant funds over the last decade is one of the many manifestations of the dynamic development in the Islamic finance sector. The rapid expansion in the number of managers offering Shariah-compliant investment vehicles across the world demonstrates the increasing diversity of the industry in terms of asset classes and geographies. Currently, Islamic funds across the world are estimated to manage assets of about US$70 billion while the number of funds is about 680.

Overview of 2009 Key Trends in North American Hedge Funds

January 2010 | Eurekahedge


The Eurekahedge North American Hedge Fund Index, which measures the performance of hedge funds allocating to North American markets, witnessed its best performance on record in 2009, posting gains of 23.45% through the year as strong rallies in the underlying markets across different asset classes worked in favour of the industry. This is a significant outperformance over the global average (19.29%) as well as the European hedge funds, which gained 21.69% during the same time period.

Hedge Fund Interview with Xiaobo Long, CEO & Managing Director of Cypress House Asset Managment Company Limited

January 2010 | Eurekahedge


Managed by Cypress House Asset Management Company, the China Dragon Engine Fund employs a long/short equity strategy, investing in Hong Kong markets and Chinese enterprises that are highly related to China's economic growth. Its CEO, Xiaobo Long reveals the fund's investment strategy in this interview.

Interview with Richard Bibb, CIO of AIMhedge Establishment

January 2010 | Eurekahedge


AIMhedge is a managed futures/CTA fund based in Liechtenstein. AIMhedge started out as the semi-automised trading system of Holger Albers in the early 2000s that was fully systematised and started live trading in 2005. AIMhedge has gone on to win Best German Hedge Fund in 2008 and nominated in the top five for ‘The Best Hedge Fund over 3 Years’ by the Hedge Fund Review Magazine.

Overcoming the Capital Challenge

January 2010 | Eurekahedge


The lower levels of leverage both of the hedge funds themselves and their investors, coupled with the willingness of Asia hedge funds to meet redemption requests, recognising that suffering a reduction in assets under management would go towards preserving the future relationship with cash-hungry investors, has meant that the level of hedge fund restructurings in Asia may have been less than in other parts of the world.

Managed Accounts: Back to the Forefront

January 2010 | Philip Niles, Butterfield Fulcrum


As Bernie Madoff gets comfortable in his new surroundings, having traded his penthouse for the jailhouse, the issue of transparency has returned to the alternative investment industry with vigour and urgency. Perhaps no more obvious is this than in the very recent and profound resurrection of managed accounts in lieu of the typical hedge fund structure.

Outsourcing Operational Hedge Fund Due Diligence

January 2010 | Markus Federle & Frederic Berthier, The Fairsky Group


The financial crisis has revealed a number of prominent examples of funds suffering from operational shortcomings and a lack of internal controls and procedures. These incidental observations are supported by recent research, which has shown that more than 50% of hedge fund failures are caused by operational issues. Fund investors are therefore refocusing their attention on operational fund due diligence and are reassessing their due diligence procedures and standards. The recently published IOSCO best market practices for funds of hedge funds provide some guidance in this respect.

November 2009 Hedge Fund Performance Commentary

December 2009 | Eurekahedge


Hedge funds bounced back with strong positive performances in November after flat to slightly negative returns in October. The Eurekahedge Hedge Fund Index, which tracks the performance of all hedge funds on an equally-weighted basis, gained 1.85% in November, bringing the YTD figure to 18.24% – the highest November YTD figure on record and on par with the bumper year of 2003.

2009 Key Trends in Global Fund of Hedge Funds

December 2009 | Eurekahedge


2009 has been a year of mixed fortunes for funds of hedge funds, witnessing record redemptions through most of the year while at the same time, posting one of the best performances year-to-date. The Eurekahedge Fund of Funds Index has gained 9.17% November YTD and is on track to have the best year since 2003. In terms of asset flows, however, 2009 has been the worst year on record, witnessing net redemptions of US$164 billion November YTD.

Hedge Fund Interview with Dharmin Mehta, COO of Capveda Asset Management Limited

December 2009 | Eurekahedge


Dharmin Mehta discusses the strategies deployed by Capveda Asset Management Limited. The Capveda Emerging India Fund is owned and managed by Capveda Asset Management Limited (CAML). The asset management company and its fund are both domiciled in Mauritius. CAML specialises on the development and implementation of market neutral strategies and fund management. It has recently launched an India-centric market neutral fund for global investors. The fund derives its alpha from market volatility and inefficiencies and not market trends. The fund is based on the algorithmic trading model. “AT” refers to the strategies that give automated trading signals based on the proprietary algorithm/formula built on certain mathematical models.

The More Things Change, the More They Stay the Same

December 2009 | Paul Smith, Triple A Partners


We have just passed the one-year anniversary of the great financial crisis of 2008 – an event marked by the print and television media with a series of in-depth retrospectives. To my mind, all of these reviews seem to have struggled to portray the events of late last year as a watershed moment in the evolution of the financial services industry. Twelve months down the line, how much has really changed for the hedge fund industry in Asia and has any good come out of this crisis?

The Sophisticated Choice

December 2009 | Olivier Sciales & Remi Chevalier, Chevalier & Sciales


For a long time, Luxembourg hedge funds and funds of hedge funds (FoHFs) have been set up under several wrappers, namely funds submitted under part II of the law of 20 December 2002 on UCIs (the 2002 Law) and specialised investment funds (SIFs) governed by the law of 13 February 2007. As of today, hedge fund managers are considering launching UCITS platforms (especially ‘sophisticated UCITS’). As is widely known, UCITS funds are harmonised European retail fund vehicles that can be sold globally and which benefit from the European passport, enabling investment managers to easily market their funds within the EU.

Back Down the New Haven Line

December 2009 | Eurekahedge


It is no accident that the New Haven Line is well-populated with hedge fund managers. This landscape is a revelation of what, for the most part, hedge funds around the globe represent.

New PE Firms Hedge Bets with Pledge Funds

December 2009 | Shraddha Nair & N. Sundaresha Subramanian, Livemint


A fund without a fund is an oxymoron – but not in the increasingly crowded world of private equity (PE) and venture capitalism. Financiers are using so-called fundless structures as their calling card to enter India, where an estimated 350-400 PE funds are already jostling for space. Jaganath Swamy, a former McKinsey and Company consultant and a Wharton MBA, has used one such structure when he headed back to India after a short stint with a large PE fund in New York. He chose to launch a pledge fund after he saw that a number of limited partners (LPs) in the US were unhappy with India-focused funds.

Islamic Foreign Exchange Swap as a Hedging Mechanism Perspective

December 2009 | Asyraf Wajdi Dusuki, International Shariah Research Academy for Islamic Finance


Islamic foreign exchange swap (Islamic FX swap) is a contract that is designed as a hedging mechanism to minimise market participants’ exposure to volatile and fluctuating market currency exchange rates. To date, there are three main instruments of Islamic swaps – FX swap, cross-currency swap and profit rate swap. This article focuses solely on Islamic FX swap.

October 2009 Hedge Fund Performance Commentary

November 2009 | Eurekahedge


Hedge funds largely outperformed the underlying markets in October, with the Eurekahedge Hedge Fund Index down by a marginal 0.3%1 during the month as opposed to larger decreases seen in the markets globally – the MSCI World Index lost 1.85% through October. The modest performance by hedge funds was seen in the face of a mixed month for most asset classes, as equities and commodities performed strongly earlier in the month but lost value towards the end, while the trend was the opposite for bonds and the US dollar. However, the month was significant, as it brought to an end the longest run of back-to-back positive returns since 2007.

2009 Key Trends in Latin American Hedge Funds

November 2009 | Eurekahedge


After experiencing some challenging times in 2008 and 1Q2009, Latin American hedge funds1 have rebounded remarkably in the second and third quarters of 2009, bringing the size of the industry above the December 2008 level of US$42 billion. Based on the data in Eurekahedge Latin American Hedge Fund database, we estimate the size of the hedge fund industry in Latin America to be US$51 billion, with 417 hedge funds currently investing in the region. Latin American managers posted healthy returns of 2.46% in September, bringing their YTD performance to a strong 21.1% while also attracting capital, resulting in net positive asset flows of US$4.1 billion.

Safe to Go Back in the Water?

November 2009 | James Smith


Hedge funds suffered more than just financial damage in the carnage of last year – although a near 40% decline in assets across the industry was disastrous. Scandals in the mainstream press, combined with broken performance promises, meant that the reputational impact on these funds was equally devastating.

SRI: Are We Blind to Risk in the Financial Sector?

November 2009 | Alexandra Tracy, ASrIa


The extraordinary economic events of the last year have created a unique opportunity for shareholders to re-examine their investment process and to consider both the merits and the shortcomings of environmental, social and governance (ESG) analysis, especially in respect to financial institutions.

September 2009 Hedge Fund Performance Commentary

October 2009 | Eurekahedge


With the global markets maintaining their forward momentum through September, the hedge fund sector also continued its positive performance for the seventh straight month. The Eurekahedge Hedge Fund Index recorded a gain of 2.6% for the month and 6% for 3Q2009, bringing the YTD returns to 16.1%. This is the best year-to-September performance on record for the composite index in a decade, with 2009 performance promising to go beyond the previous high set in 2003.

2009 Key Trends in European Hedge Funds

October 2009 | Eurekahedge


After a very challenging 2008 and 1Q2009, the European hedge fund industry has witnessed a remarkable growth during the March to August 2009 period, bringing the size of the industry back to end-2008 level. European managers returned strong results of 3.34% in September, bringing the YTD performance to 19% in 2009. This is the strongest YTD September performance since 2000 (when the sector had returned 21% by the ninth month). The sector had grown at a swift pace since 2000, reaching its highest point in June 2008, with assets of US$472 billion, before shrinking rapidly in the face of heightened volatility across all asset classes and massive redemptions in the latter half of 2008 and in 1Q2009.

Lessons Learned From Hedge Fund Fraud

October 2009 | Melvyn Teo, Singapore Management University


On 10 December 2008, Bernard Madoff told two of his senior employees that his investment advisory business was “just a one big lie,” and basically a “giant Ponzi scheme”. A massive SEC investigation soon followed, which culminated with the sentencing of Bernard Madoff to life imprisonment for engineering a $65 billion Ponzi scheme, one of the largest in financial history. What intrigued market watchers was not so much the pool of well-heeled investors, including celebrities, charitable organisations, pension funds, large banks, hedge funds and funds of funds that were taken in by Madoff, but rather, how Madoff was able to escape detection for so long.

Flexibility and Tax Dominate Structure

October 2009 | Margie Lindsay, Hedge Funds Review


What are the main legal considerations in choosing a structure for a hedge fund? Brian McDermott and Siobhan Moloney at A&L Goodbody say agility, in terms of industry, investor and regulatory demand, should be considered when selecting a fund structure. They note that Irish qualified investors fund (QIF) allows the use of the most complex investment strategies. The Irish regulator’s usual requirements regarding leverage and diversification do not apply as few investment restrictions are imposed on QIFs. There are also a number of structures that can be used to mitigate difficulties in obtaining tax treaty relief.

UCITS Funds Gain Popularity, Increasingly Employ Hedge Fund Strategies

October 2009 | Grellan O'Kelly, Irish Financial Services Regulatory Authority


The term UCITS refers to the title “Undertakings for Collective Investment in Transferable Securities”. UCITS are retail funds authorised by one of the member states of the European Union (EU), and these funds have grown to become a hugely successful product, seen by investors and promoters as a “gold-standard” in terms of investor protection, regulation and disclosure. Latest figures from the Brussels-based European Fund and Asset Management Association (EFAMA) show that UCITS net assets under management as at end-March 2009 amounted to almost $6 trillion.

The Winding Road to Sustainable and Responsible Hedge Fund Investing

October 2009 | Erik Eidolf & Marcel Herbst, Harcourt AG


Sustainable and responsible investing (SRI) is rapidly making significant inroads into the mainstream investment world. Once considered a cottage industry primarily catering to a small set of faith-based investors, today approximately US$7 trillion of assets1 are managed within the context of sustainable investing. Investors, be they individual or institutional, view SRI investing no longer as an exercise in altruism, but rather as a valid means to generate superior performance. The alternative investment industry has started to offer SRI solutions as well. In our view, hedge funds are particularly suited for SRI investing. They tend to be very active investors and able to quickly adapt to changing markets. Therefore, they are also suited to embrace SRI in their investment practices. With this article, we highlight the most recent developments within the hedge fund industry related to SRI and provide our best guess as to what the future holds.

August 2009 Hedge Fund Performance Commentary

September 2009 | Eurekahedge


Continuing with robust performance for August that began when markets picked up in March, hedge funds recorded their sixth consecutive month of positive returns. The Eurekahedge Hedge Funds Index gained 1.3% in August (13.3% YTD) amid mixed movement across asset classes – the S&P 500 was up by 3.3%, as markets continued with the rally which started in March, while the Dow Jones-UBS Commodity Index was down 0.6%.

2009 Key Trends in Asian Hedge Funds

September 2009 | Eurekahedge


After growing at an exponential pace for nearly five years, the Asian hedge fund industry suffered massive redemptions coupled with significant losses, owing to tumbling equity markets in 2008, bringing its size down from its peak of US$176 billion as at end-2007 to US$107 billion as at end-July 2009. Although the current level of assets is no different from that seen around the end of 2005, it represents a remarkable 24% compounded annualised growth rate since end-2000, compared to a 16% annualised growth rate for the global hedge fund industry.

How Hedge Funds are Raising Capital in 2009

September 2009 | David Shpiz, The Curran Group


Several of our clients implemented dramatic changes to their business and strategy over the last 12 months. They are beginning to think about the short and longer term needs with regard to human capital. Many of the organisations that we work with are continuing to focus on the tightened credit market and the difficulty in raising capital. We have seen the demand for effective marketers and fundraisers dramatically increase over the past six months. Many firms are looking at new avenues to increase capital and attract new investors. Fundraising is unquestionably a top priority for all of our clients.

Changing Times

September 2009 | Margie Lindsay, Hedge Funds Review


If any doubters remain, they are few and far between. The hedge fund world, even before the imposition of wide-scale regulation and oversight, has fundamentally changed. How the industry will develop, however, is not certain. Several interesting influences and trends are present. And while there is a lot of talk, it is not always clear if that has or will translate into reality.

Hedge Fund Managed Accounts: Panacea Or Source of New Risks?

September 2009 | Christopher Rose, Clear Lake Consulting


There are few investors who were not caught out by the lack of liquidity and transparency in their holdings in 2008. Managed accounts can address these issues, as well as the more publicised fraud concerns that keep investors awake at night.

Alternative Construction

September 2009 | Dr Humayon Dar, BMB Islamic


Devout Islamic investors have by and large kept themselves at bay from hedge funds. Consequently, most managers of full-fledged Islamic banks shy away from investing their proprietary money in hedge funds and get additionally nervous on the prospects of having to sell an Islamic hedge fund.

Islamic Finance and SRI: Any Crossover?

September 2009 | Novethic


Socially responsible investing (SRI) is an investment management approach which integrates environmental, social and governance (ESG) criteria in traditional financial analysis. Despite having less framework and detailed rules than Islamic finance, SRI shares a focus on non-economic factors in its economic and social principles.

July 2009 Hedge Fund Performance Commentary

August 2009 | Eurekahedge


After returning a healthy 9.5% through the first half of 2009, the composite Eurekahedge Hedge Fund Index rose 2.2% in July, with returns for the first seven months of the year adding up to 12% - the best year-to-July returns on record for the Index.

2009 Key Trends in Global Hedge Funds

August 2009 | Eurekahedge


The global hedge fund industry has seen exponential growth over the past decade, with hedge fund assets peaking in mid-2008 at US$1.95 trillion – a seven-fold increase since the start of 2000. However, the drying up of liquidity, the collapse of some large financial institutions, a spike in risk aversion, tumbling equity markets and the resultant spate of redemptions saw assets shrinking by nearly a third, hitting a low of US$1.29 trillion as at end-April 2009.

Hedge Fund Focus: What Are The Key Issues?

August 2009 | Thiha Tun & Samantha Shankar, Herbert Smith LLP


Hedge funds have been subjected to an increased degree of scrutiny and criticism over the course of last year as a result of global financial events and ensuing demands from investors. They have responded by reviewing their practices and updating their operating models. This article summarises some of the key concerns which hedge funds have been required to focus on over the course of last year and what they face in the immediate future.

Changing Hedge Fund Landscape Shapes Demand For Technology

August 2009 | Deirdre Brennan, FINalternatives


Last year’s major shakeout in the hedge fund industry – with roughly 20% of all funds closing up shop – has radically altered its technology and risk management landscape. Those funds that did survive and the new ones just entering the market are scrambling to equip their operations with the best platforms to appease both their investors and the regulators tightening the screws on them.

June 2009 Hedge Fund Performance Commentary

July 2009 | Eurekahedge


After a record quarter ended May 2009, hedge funds had a subdued month in June. The composite Eurekahedge Hedge Fund Index returned 0.2%, on the back of flat to negative returns across key asset classes; the MSCI World Index down 0.6% and the S&P 500 flat, while the commodity markets as measured by the Continuous Commodity Index fell 4.4%.

2009 Key Trends in North American Hedge Funds

July 2009 | Eurekahedge


North American hedge funds (NAHFs) have been among the best performing hedge fund managers over the past two years; since the meltdown of the US subprime mortgage markets and spillover of resultant credit crises into other asset classes. The Eurekahedge North American Hedge Fund Index has returned a healthy 5.2% over the two years since June 2007, while the S&P 500 was down 38.8% over the period.

Opportunities in the Changing Landscape of Emerging Hedge Fund Managers

July 2009 | Andrew Godfrey and Dan Barnett, Revere Capital Advisors LLC


Despite the turbulence and trauma that 2008 exacted on the hedge fund industry, there are those who argue that the financial markets have generated an extraordinary set of business and investment opportunities. Nowhere is this more prevalent than in the emerging manager space, as the current quality of managers looking to start or re-launch a new hedge fund, coupled with the scarcity of capital, means that active seeders can be very selective. Although it is essential for emerging managers to work with a strategic partner today (given the lack of credibility in hedge funds, costs and expertise associated with operating a fund), managers should be equally as selective when choosing a partner.

Ireland Expands Its Role as a Regulated Fund Centre

July 2009 | John Hamrock, Kinetic Partners


Thanks to Ireland’s dedication to providing cost-effective, efficient and highly skilled fund administration, its global reputation as a leader in international investment management continues to expand. Clearly, recent events have required hedge funds to question existing business models and investors to increasingly seek greater transparency. This increased scrutiny has furthered Ireland’s strong industry position. With €1.4 trillion in total assets under administration, half of which is comprised of hedge fund administration, Ireland continues to demonstrate its strength and future potential.

May 2009 Hedge Fund Performance Commentary

June 2009 | Eurekahedge


Hedge funds produced record returns in May, with the Eurekahedge Hedge Fund Index up a remarkable 5.4% - its best monthly return in almost a decade. The month’s performance was achieved on the back of strongly rallying equity markets – which surged for the third consecutive month (the MSCI World Index rose 8.6%) amid increasing investor sentiment and healthier risk appetites. Hedge funds also saw net inflows in May, the very first time in 10 months; redemptions of US$8 billion were more than offset by gross inflows of 19.3 billion during the month.

April 2009 Hedge Fund Performance Commentary

May 2009 | Eurekahedge


The Eurekahedge Hedge Fund Index rose a strong 3.1% in April, as the equity markets continued rallying strongly from their oversold levels, fuelled by large-scale buying amid strengthening risk appetites. The MSCI World Index rose 10.9% during the month, partly owing to 1Q2009 earnings reports having beaten expectations. However, on a year-to-date (YTD) basis, hedge funds are up 4% in the first four months of 2009, while the aforementioned equity index remains in negative territory for the period.

Overview of 2008 Key Trends in Latin American Hedge Funds

May 2009 | Eurekahedge


The Latin American hedge fund space has seen exponential growth over the past decade, with the number of funds and assets therein having recorded an almost four-fold and a remarkable 23-fold increase respectively, between end-2000 and end-2007. The Eurekahedge Latin American Hedge Fund Index recorded impressive returns of 20.6% (annualised) during the period. However, the industry shrank over 25% in terms of assets during 2008, against the backdrop of slowing global economic growth, weakening credit markets, diminishing risk appetites and record-high redemptions out of hedge funds (US$12 billion from Latin America and US$219 billion globally).

High Sharpe Ratios and High Leverage Help Hedge Funds Survive

May 2009 | Irene Aldridge, Able Alpha Trading Ltd


In an article dated 24 January, Newsweek estimates that of the 8,000 hedge funds that existed in January 2008, 2,000 went out of business by January 2009 and another 2,000 will disappear by January 2010. What determines which funds stay in business and which funds will go by the wayside?

Pre-IPO Deals Haunt Companies

May 2009 | Sanat Vallikappen, Mint


Investments made by private equity funds, hedge funds and other investment vehicles in companies that had been planning to raise money from the capital markets through initial public offerings (IPOs) have come back to haunt the founders of many such firms. Companies owe their investors at least Rs4,000 crore for their inability to come out with IPOs within a specified time frame, a precondition for such investments, according to a Mint analysis of data provided by Nexgen Capitals Ltd, the investment banking arm of Delhi-based stock broker SMC Global Securities Ltd.

March 2009 Hedge Fund Performance Commentary

April 2009 | Eurekahedge


The composite Eurekahedge Hedge Fund Index rose a strong 1.4% in March, finishing 1Q2009 up 1%, in contrast to the MSCI World Index which is down 12.5% for the quarter. The month’s gains were delivered against a backdrop of sharp reversals in the underlying markets – equities rose 7.2% during the month, due to action from governments and policy-makers across the board, coupled with encouraging news about the profitability of major US banks. Commodities rose 4.4%, as measured by the Continuous Commodity Index, with crude oil, energy and agricultural commodities driving the markets, during the month.

Overview of 2008 Key Trends in European Hedge Funds

April 2009 | Eurekahedge


After growing at a rapid pace for the past decade, the European hedge fund industry in 2008 shrank against a backdrop of heightened recessionary pressures and record levels of volatility across most asset classes. Based on the data of 2,3741 operational and 983 obsolete funds in the Eurekahedge European Hedge Fund Database2, we believe there are currently 2,291 funds investing in Europe, managing US$300 billion in assets. This marks an increase of 58% in the number of funds and 133% in terms of assets, since the end of 2003. Up until 2008, the marked difference in the growth rates suggests a sharp increase in the average size of hedge funds in the region over the years, owing to superior risk-adjusted return which led a strong inflow of capital into the industry.

Hedge Fund Interview with Aaron Smith, Managing Director of Superfund Financial (Singapore) Pte Ltd

April 2009 | Eurekahedge


The Superfund group of investment companies was founded in 1995 by Christian Baha in Vienna, Austria, and are now among the world’s largest providers of managed futures funds. In March 1996, members of the Superfund group of investment companies launched the first fund for private investors. By 1997, with further refinement, the award-winning Superfund trading strategy emerged, resulting in a fully automated approach to trading.

The Pros and Cons of Passive Hedge Fund Replication

April 2009 | Noel Amenc and David Schroder, EDHEC Risk and Asset Management Research Centre


The remarkable rise of the hedge fund industry in the last decade of the twentieth century would not have been possible without the great demand of wealthy private clients for sophisticated investment opportunities. Institutional investors, by contrast, long remained reluctant to invest in hedge funds. Although clearly drawn to the returns and the risk reduction potential of these investments, they have only recently started to shift a part of their assets to hedge funds.

Looming Changes in Hedge Fund Regulation

April 2009 | Mark Stoutenburg and Lawrence Cohen, Gibbons


The ongoing financial meltdown has resulted in intense scrutiny of the existing financial industry regulatory scheme, with calls for greater regulation coming from all quarters. Hedge funds have found themselves in the crosshairs in both the US and Europe; and increased regulation of hedge fund managers and the funds they advise is inevitable.

Sustainable and Responsible Investing - Taking Steps, Leaping Ahead

April 2009 | Erik Eidolf, Harcourt AG


Amongst a backdrop of turbulent financial markets, the concept of sustainable and responsible investing (SRI) is continuing to develop at a rapid pace. An ever–increasing number of institutional investors around the globe consider and implement SRI1 in their investment practices. This also presents opportunities for hedge funds to cater to an increasingly SRI-oriented client base. This article describes the most recent developments within the SRI industry, the prevailing current trends, as well as the effects this is expected to have on hedge funds.

February 2009 Hedge Fund Performance Commentary

March 2009 | Eurekahedge


Hedge funds had another month of strong outperformance to the underlying markets with the Eurekahedge Hedge Fund Index down 0.8%. In contrast, the MSCI World Index shed 10.5% during the month while the Reuters CRB Index lost close to 4%. The month’s negative return was realised against the backdrop of concerns surrounding the solvency of some major financial institutions and talks regarding the nationalisation of distressed US banks, which, despite the approval of the US$787 billion economic stimulus package in the US, spooked equities across the board. Furthermore, deepening recessionary pressures across some major economies and the resultant negative economic news flow took a toll on the markets; for instance, the news of a record Japanese trade deficit impacted regional equities causing a sharp depreciation in the yen.

Overview of 2008 Key Trends in Asian Hedge Funds

March 2009 | Eurekahedge


Hedge funds across the board faced a rough year through 2008, with Asian managers being no exception. The average Asian hedge fund, as measured by the Eurekahedge Asian Hedge Fund Index, fell 21.1% in 2008, with the region’s hedge fund industry shrinking by nearly US$50 billion (28%) in terms of assets. Based on the data of over 1,160 hedge funds in the Eurekahedge Asian Hedge Fund database, we estimate the size of the Asian hedge fund industry at 1,117 funds managing US$126 billion in assets as at end-2008.

Hedge Fund Interview with Dermot Butler, Chairman of Custom House Global Fund Services Ltd

March 2009 | Eurekahedge


Dermot Butler, Chairman of Custom House Global Fund Services Ltd (CHGFS), has more than 35 years’ experience in the financial services industry. Butler has worked as both a stockbroker and stock jobber (market-maker or specialist) on the London Stock Exchange; and subsequently, as a commodity broker and as a principal dealer in commodity options on the London Metal and London Commodity Exchanges.

Hedge Fund Interview with Michael J Liang, CIO of Foundation Asset Management

March 2009 | Eurekahedge


Foundation Asset Management (HK) Ltd, regulated by the Securities and Futures Commission Hong Kong, is an independent China-focused asset management company, committed to maintaining a focus on absolute returns and delivering comparative performance through a disciplined risk-adjusted investment process in all markets. In this interview, Eurekahedge speaks to its hedge fund manager and CIO, Michael J. Liang.

India-focused Hedge Funds in for Long Haul

March 2009 | Hung Tran, FINalternatives


It is no secret that emerging markets hedge funds, specifically those focused on India, fell from their apex last year and took a beating along with the rest of the industry. Funds of all strategies and sizes dropped between 28% and 88% during the course of the year.

Quality is Key for Hedge Fund Operations

March 2009 | Marshall Saffer, Vitoes Fund Services


The past year has been a difficult one for hedge funds. Market conditions, regulatory emergency orders and volatility all affected the ability of funds to develop and maintain strategies that made for consistent performance. Even in that context, funds tended to perform “better” (meaning performing less worse) than traditional asset managers.

The Pioneering Role of Hedge Funds

March 2009 | Dr Arjuna Sittampalam, EDHEC Risk and Asset Management Research Centre


Hedge funds are being vilified for poor performance and are threatened with heavy regulation. Amidst all this negative comment, it is salutary to remember the hedge funds’ pioneering and dynamic contribution to the investment management industry, as well as their substantial positive social contribution. It will be a pity if the heavy hand of regulation destroys the benefits they bring to asset management, the wider economy and society.

The Hedge Fund Industry 2009 and Beyond: A Roadmap

March 2009 | Christophe Gr??nig and Marcel Herbst, Harcourt AG


2008 will be long remembered as the year of the liquidity crisis. Within a few months, the competitive landscape of global financial intermediaries was reshuffled. With credit markets frozen, the main equity markets suffered decline of 40% or more and continue to display staggering volatility not seen in generations. The most visible early casualties of the crisis were the large independent investment banks. With governments in Europe and the US now being shareholders in a wide array of financial institutions, the financial world has changed for good. And it is reasonable to expect that more changes are on the way. These tumultuous times have a profound and lasting impact on the hedge fund industry.

January 2009 Asset Flows Update

February 2009 | Eurekahedge


January was a positive month for hedge funds, as managers outperformed the underlying equity markets and most strategies finished the month in the black; the Eurekahedge Hedge Fund Index returned 0.2%. This translated into US$2 billion net performance-based increase in assets during the month, which was, however, negated by net redemptions of US$71 billion through January.

2008 Key Trends in Global Hedge Funds

February 2009 | Eurekahedge


After a very strong 2007, hedge funds faced a challenging year in 2008 (particularly the latter half) in the face of high volatility, collapsing banks, drying up liquidity, heightened investor risk aversion and severe redemption pressures. Against this backdrop, hedge funds had their worst year on record with the Eurekahedge Hedge Fund Index ending the year down 12.5%.

Raising the Bar for Hedge Funds

February 2009 | Stanley Goldstein, New York Hedge Fund Roundtable; and Frank Plantan, University of Pennsylvania


Even the best economists have trouble explaining the recent unravelling of global financial markets. Headlines suggest a lack of focus in Washington and on Wall Street. This has contributed to a crisis of confidence not only in our policy makers but also the system itself.

Hedge Funds Frustrated by Investors, Not Markets, in 2008

February 2009 | FINalternatives


While the bulk of the hedge fund industry suffered from drawdowns and redemptions last year, a handful of non-household funds actually generated the absolute returns that they are, by definition, after. But these under-the-radar managers say their relatively strong performances have still not won them an audience with all-important institutional investors.

Hedge Fund Reporting Survey – November 2008

February 2009 | Felix Goltz and David Schroeder, EDHEC Risk and Asset Management Research Centre


Like any investors, investors in hedge funds are naturally interested in knowing how hedge fund managers allocate their initial investment, and whether this allocation yields positive returns or not. It is not only information on past investment returns that is of particular interest; prospects for future gains or losses are relevant to investors as well.

Lessons Learned from 2008: Hedge Funds Need to Diversify Custodial, Operational Risk

February 2009 | Michael Murray, Shoreline Trading Group


There is little doubt that the events of 2008 will have long lasting effects on the asset management industry. Additional oversight and regulatory statutes are a given as a result of this tumultuous year and asset managers around the globe have had to reassess their investment and operational strategies.

Hedge Fund Asset Flows – 2008 in Review

January 2009 | Eurekahedge


2008 has been an arguably rough year for hedge funds. Over 20%, or US$384 billion, has been shaved off the total value of hedge fund allocations globally, and industry assets have dipped below their December 2006 levels (US$1.54 trillion) for the first time in December 2008 (to US$1.5 trillion). Investment losses accounted for US$185 billion of the decline, while net asset outflows from fund liquidations and investor redemptions made up for the balance of US$198 billion.

Hedge Fund Performance Commentary – 2008 in Review

January 2009 | Eurekahedge


December has traditionally been a positive month for hedge funds, and 2008 was no different; the Eurekahedge Hedge Fund Index returned a healthy 1%1, positive for the first time since May 2008. The month’s gains came despite a continued decline in the global economic outlook in December and negative repercussions from the Madoff scandal. The latter meant that redemption pressures continued to be an issue despite improved performance and the fact that more funds locked-in their investors during the month.

2008 Key Trends in North American Hedge Funds

January 2009 | Eurekahedge


The Eurekahedge North American Hedge Fund Database contains data on 3,850 funds, based partly on which, we estimate the current size of the region’s hedge fund industry at 4,670 funds, managing about US$1 trillion in assets. This, despite a decline in both the number of funds and assets through 2008, marks an annualised increase of 6% and 12% in the number of funds and AuM respectively, since end-2003. Figure 1 shows the growth in the region’s hedge fund space over the past decade.

Quant Hedge Funds Rise in Falling Markets

January 2009 | FINalternatives


Quantitative hedge funds that were posting miserly returns just last summer are now taking it to the market. These funds are trouncing their fellow hedge funds and the broader markets, and some are on pace for their best year ever.

A Run on Hedge Funds: Redemption Strategies and Responses

January 2009 | Lawrence Cohen and Thomas M Griffin, Gibbons


The global economic crisis has had a significant impact on the hedge fund world. One of the most striking developments has been the rush by many investors to redeem their holdings. Individual and institutional investors alike, in reaction to dismal returns on their investments (the average fund has lost 20% this year), have engaged in a classic run on the bank. In response, dozens of hedge funds have suspended or restricted redemptions – if such actions were authorised by their governing documents.

2008 Returns in Perspective – The Difference between Small and Large Hedge Funds

January 2009 | Serge Berger, AlternativeSoft


As we look back at the untamed securities markets that defined 2008, we naturally have to ask ourselves which asset classes performed the least poorly. To do this, we use the software platform on AlternativeSoft, which enables us to run statistics on individual funds, as well as on a group of hedge funds. Using ‘Asset Search’ function, we divided the assets under management (AuM) of the hedge fund universe into four buckets of different sizes as shown in Table 1 below.

November 2008 Hedge Fund Performance Commentary

December 2008 | Eurekahedge


The Eurekahedge Hedge Fund Index has continued its negative streak for the sixth month in a row, falling 0.7%1 as November saw the continuation of several of the dominant themes from September and October: distressed selling, deleveraging and redemptions among hedge funds, heightened volatility and an increasing disconnection between asset prices and underlying fundamentals, and economic data exacerbating the recessionary growth outlook. In fact, it is commendable that, in this worsening investment environment, month-to-month losses for the Eurekahedge Hedge Fund Index have been the least negative in the last five, while net redemptions are also slightly down from previous monthly highs.

Hedge Fund Interview with Todd Gorelick, Managing Partner of Gorelick Brothers Capital

December 2008 | Eurekahedge


Gorelick Brothers Capital, established in 2003, manages the Morrocroft Special Opportunity Fund I, a hybrid fund of funds with a private equity structure, focused exclusively on real estate credit strategies. The firm’s investment team has decades of experience in subprime consumer lending, residential mortgage information and settlement services, structured credit securitisation and trading, and commercial real estate investment and analysis. The firm also manages the Morrocroft Diversified Fund, a multi-strategy fund of hedge funds launched in 2005 with a wealth preservation mandate.

Hedge Funds Poised For High Yield Opportunities

December 2008 | Mesh Tandon, Simran Capital


While central banks have injected US$3 trillion into the global economy in the past two months, high yield corporate credit markets are still in a state of decline. Despite some signs of credit loosening in the commercial paper and other high-grade markets, banks and capital markets continue to clamp down on lending to companies further down the credit curve.

The Current Market for Hedge Funds

December 2008 | Christopher Miller, Allenbridge HedgeInfo


Key points: 1. Hedge funds are not all the same, but deleveraging and redemptions are very common issues at the moment. 2. Remember the three Ds – Diversification, Due diligence and Darwinism. 3. The overhang of potential redemptions towards the end of 2008 could stress popular hedge fund strategies. 4. For crowded strategies, subscriptions or the end of deleveraging could be very positive, but more redemptions, further deleveraging or shutdowns could cause further losses. 5. Change brings opportunity. Seek out the less crowded trades and more innovative strategies.

October 2008 Hedge Fund Performance Commentary

November 2008 | Eurekahedge


The Eurekahedge Hedge Fund Index shed 3.9% in October, amid supremely choppy markets (the volatility index, VIX, breached a record-setting 90 points during the month), brought on by an environment of tightening credit conditions and heightening expectations of a global economic slowdown; the MSCI World Index and the Reuters CRB Index shed 19.1% and 18.3% respectively.

2008 Key Trends in Latin American Hedge Funds

November 2008 | Eurekahedge


The Latin American hedge fund space has seen remarkable growth over the past decade. The number of funds as at September 2008 was nearly four times that as of end-2000, while assets over the same period recorded an over 21-fold increase. Based on the data of 462 funds1 in the Eurekahedge Latin American database, we estimate there are currently 403 operational hedge funds, managing about US$52 billion in assets, across the region’s hedge fund industry as at September 2008. The figure below gives a snapshot of the industry growth over the past decade.

Hedge Funds: Quality Returns in Bear Markets

November 2008 | Eurekahedge


The financial landscape has permanently changed after the historic events of September 2008, and markets are seized up by a crisis of investor confidence. Major central banks have been struggling to quell market fears, inject liquidity, cut rates and kick-start growth in the face of the steady stream of negative economic data and an increasingly recessionary outlook for the global economy (Germany, Europe’s largest economy, has officially fallen into recession after its GDP shrank for the second consecutive quarter in 3Q2008).

A Year of Crisis: Have Hedge Funds Kept Their Absolute Return Promises?

November 2008 | Philippe Malaise, EDHEC Business School


The financial crisis that began more than a year ago now, after the sudden fall in the prices of investments backed by subprime loans, sent shockwaves through the markets, with unprecedented write-downs of asset values continuing to undermine the foundations of the banking system and leading to a pronounced economic slowdown. The great increase in risk aversion ultimately led to great adjustments in the stock markets. Since the initial falls of June 2007, the major stock market indices have posted losses in the double digits. Volatility has increased abruptly; in the first quarter of 2008 it was twice its second quarter 2007 low.

Hedge Fund Investing in a New World

November 2008 | Castle Hall Alternatives


The credit crisis which first began in mid-2007 – with the failure of a hedge fund managed by Bear Stearns – has now accelerated to create the most severe financial market dislocation since the Great Depression. It goes without saying that, after the events of the past 18 months, markets will not be the same: both investors and money managers will face a “New World“.

Pension Funds Pull Back from Hedge Funds

November 2008 | FINalternatives


Hedge funds and funds of funds are seeing an increase in redemption notices as the industry plunges deeper into the red amidst regulatory constraints and the global credit crisis. And while hedge fund managers are watching the notices flood in, pension fund investors are pulling back from their hedge fund commitments. The US$11 billion School Employees Retirement System of Ohio has decided to shelve its hedge fund investments, which currently stand at US$258 million, according to Laurel Johnson, a spokesperson for the plan. Johnson said the plan, which is allowed to invest up to 10% of its assets in hedge fund strategies, is “moving very slowly toward reaching that ceiling” because of problems in the financial markets.

Investors Keener on Structuring Alternatives

November 2008 | Nick Ferguson, FinanceAsia


Institutional investors in Asia are increasingly finding that structured products are a useful way to buy exposure to hedge fund returns. Driven by market volatility and a greater focus on capital treatment, insurers and financial institutions are increasingly buying funds of hedge funds with principal-protected wrappers. They are also using derivatives and structured products to switch hedge fund investments into their local-currency allocation or even to make them Shariah-compliant.

Islamic Shorting: Trend or Hype?

November 2008 | Michael Mahlknecht, Delta Hedge


While short-selling is not permitted by the Shariah, more and more Islamic institutions and hedge funds claim to offer Shariah-compliant shorting solutions. Islamic short-selling is often being presented as if it were a major innovation or a significant breakthrough for Islamic finance. In reality, however, basically every contract can be ‘Islamised’ using concepts from modern financial engineering. The question is rather how high the transaction costs are, and, especially, whether one regards such mechanics as Shariah-compliant, or as just an undesirable ploy, which strikes at the foundations of the objectives of Islamic finance.

September 2008 Hedge Fund Performance Commentary

October 2008 | Eurekahedge


The Eurekahedge Hedge Fund Index lost 4.6% in September, bringing average returns for the first nine months of 2008 to -7.7%, as hedge funds were able to stem drawdowns in a month that saw the S&P500 make its biggest single-day fall since 1987 (eventually finishing September down 9.1%), crude oil prices go into double-digit declines and the Dow Jones-AIG Commodity Index shed 11.6% on the month.

2008 Key Trends in European Hedge Funds

October 2008 | Eurekahedge


The European hedge fund industry has grown at a rapid pace over the past decade, with an 11-fold increase in the number of funds and a handsome 60-fold increase in assets. Based on the information of 3,150 funds in the Eurekahedge European Hedge Fund Database, we estimate 2,361 operational hedge funds within the region’s hedge fund space, managing assets to the tune of US$445 billion. The following graph charts the growth of the industry over the past decade.

Hedge Fund Interview with Kai Jiang, Portfolio Manager and Director of ChinaFund Cayman (previously known as DragonFund)

October 2008 | Eurekahedge


ChinaFund Cayman Ltd, a limited exempted company organised under the laws of the Cayman Islands, is a private hedge fund with offices in Chicago and Shanghai. Previously known as DragonFund LP, it has a track record of more than ten years of trading. The fund invests globally with a special focus on Chinese ADRs and Hong Kong shares as well as US equities with significant assets, investments, production activities, trading or other business interests in China, or which derive a significant part of their revenue from China.

Prime Brokers Benefit From Market Turmoil

October 2008 | FINalternatives


While hedge funds struggle to navigate choppy regulatory and market waters, one group of financial professionals is feeding off the frenzy in a big way. Some prime brokers are enjoying an increase in business from hedge fund clients that have been left blowing in the wind by the demise of Lehman Brothers Holdings and others that are scared to swim in the murky waters surrounding Morgan Stanley.

Change in the Air for Fund of Funds Fee Structures

October 2008 | Brad Balter, Balter Capital Management


Funds of hedge funds (FoHFs) have been and will continue to be an integral part of hedge fund investing. While many investors can and have chosen to bypass FoHF structures in order to invest “direct”, for the past ten years assets under management (AuM) under the FoHF structure grew faster than AUM for all hedge funds combined. The reasons for this impressive growth are obvious. FoHFs provide diversity among managers, reduce risk and hold out the promise of net returns higher than the average hedge fund. The long list of casualties in the hedge fund industry and recent high-profile hedge fund losses have also driven investors toward the security provided by a FoHF.

Funds of Funds: the Elderly are Vibrant – as Long as They Grow up First

October 2008 | Christopher Holt, AllAboutAlpha.com


American novelist Mark Twain once wrote that ageing was “an issue of mind over matter. If you don’t mind, it doesn’t matter.” While this may be sage advice for most of us, it’s apparently not applicable to hedge funds of funds. A recently updated study by Roland Füss of the European Business School, Dieter Kaiser of the Frankfurt School of Finance & Management and Anthony Strittmatter of the University of Freiburg finds that ageing has a dramatic impact on returns.

August 2008 Hedge Fund Performance Commentary

September 2008 | Eurekahedge


Hedge fund performance in August was characterised by loss mitigation and short-term trading, as persisting concerns over a global economic slowdown produced yet another month of mixed returns across most asset classes. The composite Eurekahedge Hedge Fund Index shed 1.2% for the month, even as global commodities (CRB) and equities (MSCI World) dropped 6% and 1.6% in value, respectively. Returns from hedge fund regional and strategy mandates were negative across the board, and the biggest losses (on average) came from directional equity and emerging market allocations.

2008 Key Trends in Asian Hedge Funds

September 2008 | Eurekahedge


The Eurekahedge Asian Hedge Fund database contains data on over 1,5701 funds, based partly on which, we estimate 1,204 operational hedge funds in the Asian hedge fund industry, managing assets to the tune of US$171 billion, as at the end of July 2008. The industry has grown at a robust pace over recent years both in terms of assets as well as number of funds – assets have increased by over three and a half times, while the number of funds has more-than-doubled since December 2003.

Hedge Fund Launches at a 9-year Low

September 2008 | Eurekahedge


As the financial markets continue to be roiled in a credit crisis that has sent volatility up across the board for nigh on one year, its impact is starting to show tellingly on the hedge fund industry – if not on the performance1 or asset flows front, then on the fund launch and liquidation front. The first half of 2008 has seen not only the lowest launch activity (272 funds), but also the highest number of liquidations (243 funds) during any comparable period over the past nine years.

Considering Hedge Funds in a LDI Perspective

September 2008 | Dr Gabriele Susinno, Unigestion


The sequence of adverse financial events characterising the market behaviour of the new millennium has forced institutional investors, such as life insurances and pension funds, to revisit the paradigms applied to manage the asset over liabilities equilibrium. Indeed, potential difficulties embedded in periods of bear equity markets and falling interest rates combined with the increasing longevity (in Western countries life expectation increases by one year every four years) and new accounting rules have fostered the pace at which institutional investors are revisiting the potential synergies between the two fundamental poles of competence: actuary and asset management.

Alternatives Investors Look for More than Returns

September 2008 | Justin Ong and Darren Lim, PricewaterhouseCoopers (Singapore)


Asia has experienced rapid growth in alternative investments in recent years, fuelled by investors’ search for increased alpha in emerging markets and by institutional players broadening their investment horizons to diversify geographical risk. Assets allocated to hedge funds, private equity and, increasingly, real estate and infrastructure funds have seen significant growth. This has led to alternative assets starting to become part of the investment mainstream.

July 2008 Asset Flows Update

August 2008 | Eurekahedge


Hedge funds saw net inflows of US$5.8 billion in July, which were more than offset by negative returns across the industry. The Eurekahedge Hedge Fund Index shed 2.2% on the month, against a backdrop of persistent volatility in the underlying markets. The month saw marked reversals across some key asset classes – commodity prices fell significantly (the Dow Jones-AIG Commodity Index lost 12%, on the month) primarily on concerns of falling demand, while equities rebounded from their intra-month lows (of -5.6% for the MSCI World Index) to close the month down 2.5%.

July 2008 Hedge Fund Performance Commentary

August 2008 | Eurekahedge


Hedge funds reined in their losses in July, as global financial markets witnessed sharp declines and reversals across major asset classes; the Dow Jones-AIG Commodity Index fell 12%, while the MSCI World Index, after shedding 5.6% intra-month, finished the month down 2.5%. By comparison, the Eurekahedge Hedge Fund Index declined by a relatively modest 2.5% , on the month.

2008 Key Trends in Global Hedge Funds

August 2008 | Eurekahedge


Hedge funds continue to attract capital amid turbulent markets and slowing global economic growth, as lowered risk appetites drive investors to seek superior returns for their risk dollars. We currently estimate the size of the global hedge fund industry at near 8,200 single manager funds that together manage assets to the tune of US$1.95 trillion (as at end-June 2008), and expect industry assets to breach the US$2 trillion barrier by end-2008. Figure 1 illustrates the pattern of growth traced by single-manager funds over the past decade.

Interview with Simon Sadler, CIO of Segantii Capital Management Ltd

August 2008 | Eurekahedge


The Segantii Asia-Pacific Equity Multi-Strategy Fund invests in Asia-Pacific equity markets with an emphasis on North Asia ex-Japan. The fund has a multi-strategy approach and the strategies include relative value, opportunistic events and catalyst driven long short. The fund aims to generate absolute returns by:

PerTrac Research Confirms that Emerging Hedge Fund Managers Outperform Older, Larger Funds

August 2008 | PerTrac Financial Solutions


PerTrac Financial Solutions today announced the results of its updated Emerging Manager Study, originally released in March 2007, confirming again the widely held belief that emerging hedge funds perform better than older, larger funds. The company makes the popular PerTrac Analytical Platform, the world’s leading investment analysis and asset allocation software.

The Climate for Hedge Funds in the GCC

August 2008 | Antoine Massad, Man Investments Middle East


The turmoil in global financial markets since last year has set an intriguing backdrop for examination of hedge funds in the Middle East region. After more than two decades of using hedge funds, private client investors from the GCC states have become familiar with their value as a source of additional returns and downside protection in their portfolios. But the financial climate has not often presented as many opportunities and challenges as we see today, according to Antoine Massad.

June 2008 Hedge Fund Performance Commentary

July 2008 | Eurekahedge


Hedge funds largely outperformed the underlying markets in June, with the Eurekahedge Hedge Fund Index down 0.5% on the month. This decline was seen in the face of wide swings across key asset classes – the MSCI World Index plunged 8.1% on the month, while energy prices witnessed a sharp run up, with crude oil hitting another record high (over US$140 to the barrel at month’s end).

Key Trends in North American Hedge Funds 2008

July 2008 | Eurekahedge


The total size of the North American hedge fund space is estimated at nearly 4,800 funds managing close to US$1.1 trillion in assets1; operating in the world’s most advanced financial markets, these funds account for nearly two-thirds of the US$1.8 trillion parked in hedge funds globally. Historically too, the North American hedge fund universe has been sizeable (refer Figure 1); to put it in context, their combined size in 2,000 is comparable to the current size of the Asian hedge fund space.

The Dangers of Historical Hedge Fund Data

July 2008 | Andrew B Weisman and Jerome D Abernathy, Stonebrook Capital Management LLC


Hedge fund portfolio managers and consultants make extensive use of historical data for the purposes of manager selection and portfolio construction. The conventional use of historical hedge fund data along with portfolio optimisation techniques will frequently result in portfolios that in practice maximise risk and illiquidity.

Capital Crunch Catches Up with Hedge Funds

July 2008 | Irene Aldridge, FINalternatives


It is no secret that the subprime crisis has cut the amount of capital available to hedge funds. While industry players procure funding from many sources including wealthy individuals, many hedge funds rely on capital introductions and margin lending provided by their prime brokers. But the latest FINalternatives Prime Brokerage Survey conducted in May indicates that prime brokers’ capital introductions and margin lending services come up short in fulfilling client expectations.

May 2008 Hedge Fund Performance Commentary

June 2008 | Eurekahedge


Hedge funds had another strong month in May, as the Eurekahedge Hedge Fund Index rose 2% during the month, despite persistent inflation concerns weighing on the markets and on investor sentiment. Managers made good gains from equities, which recorded mixed returns across different regions (the MSCI World Index rose 1.1%), and from commodities (as commodities such as crude oil and gas, among others, rallied strongly) during the month. A marginally stronger US dollar (against some major currencies) also translated into some gains, over May.

Key Trends in Islamic Funds 2008

June 2008 | Eurekahedge


Over the last decade Shariah-compliant funds have emerged as one of the most eloquent expressions of Islamic Finance, exemplifying its evolution into a dynamic and diverse industry. Understanding the issues faced in developing, managing and investing into these financial products constitutes an integral component of Islamic wealth management.

Absolute Return: A Comparative Review of Recent Hedge Fund Performance

June 2008 | Eurekahedge


Persisting turmoil in the global financial markets has led to several media reports in recent months painting hedge funds in a negative light, in terms of performance and/or redemptions. Such reports tend to ignore that there are two sides to the hedge fund performance coin – absolute return and conservation of capital. Some losses may be unavoidable in any period of turmoil, as managers close current positions (be they in response to margin calls or stop-loss triggers), and reallocate funds to safer asset classes.

Hedge Fund Portfolio Pricing Best Practices

June 2008 | Paladyne Systems Inc, Thomson Reuters, NumeriX


The recent recommendations put forward in April 2008 by two private-sector committees established by the President’s Working Group on Financial Markets (PWG) call for much needed changes to valuation policies, disclosure, and accounting practices within the hedge fund industry. Industry experts agree that change is both necessary and imminent, but recognise the significant challenges when it comes to implementing a consistent, transparent and fair pricing methodology throughout the alternative investment management sector.

April 2008 Hedge Fund Performance Commentary

May 2008 | Eurekahedge Research


Hedge funds started the second quarter of 2008 on a strong note, as the composite Eurekahedge Hedge Fund Index rose 1.5%1 on the month. Rallying equity markets, on the back of a sharp increase in risk appetites, coupled with marked reversals across some other asset classes – such as bonds and currencies – were among the factors responsible for the month’s gains. Furthermore, the Fed’s aggressive response (in the form of rate cuts and assistance in the Bear Stearns bailout in March) to the weakness across credit markets and the slowing of economic growth in the US, went some way in improving investor sentiment during April.

March 2008 Asset Flows Update

April 2008 | Eurekahedge Research


March was a difficult month for hedge funds across the board, with performance-based declines in assets among most strategies and redemptions in some; the composite Eurekahedge Hedge Fund Index shed 1.9%1.

March 2008 Hedge Fund Performance Commentary

April 2008 | Eurekahedge Research


After registering impressive gains in February, hedge funds faced a difficult month in March against the backdrop of persistent concerns on the slowing of global growth and the likelihood of a recession in the US. The composite Eurekahedge Hedge Fund Index shed 1.9%1. Volatility across the underlying markets, particularly prior to the Fed’s 75 bps rate cut on 18 March, coupled with a weak state of the credit markets, were among the factors responsible for the month’s losses. The Bear Stearns collapse and its subsequent takeover by JPMorgan (with assistance from the Federal Reserve), along with additional write-downs by major global investment banks, further weighed on the markets.

Key Trends in Asian Hedge Funds

April 2008 | Rajeev Baddepudi Eurekahedge


The 2008 edition of the Eurekahedge Asia and Japan Hedge Fund Directory covers over 860 flagship funds and is the epitome of its online counterpart, which covers 1,1501 Asian hedge funds2. Based on this and related information, we currently estimate the total size of the Asian hedge fund universe at US$160 billion as of end-2007, up 21% from our end-2006 estimate of US$132 billion. Judging by this, the performance of the Eurekahedge Asian Hedge Fund Index (19% for 2007 and 12% annualised) and the general growth of the industry over the last decade (see Figure 1), the Asian hedge fund space continues to be on a robust growth curve on both counts – number of funds and size of assets.

Hedge Fund Valuation Standards: Evolution not Revolution

April 2008 | The Bank of New York Mellon Corporation, Kinetic Partners


The demand for alternative investments such as hedge funds is increasing dramatically. Institutional and retail investors alike are attracted to the investment opportunities offered by hedge funds and the prospects of higher returns, compared to traditional investment funds. However, in times of tighter credit and market volatility, all that glitters is most certainly not gold. It is becoming ever harder to generate alpha or, from an investor’s perspective, to pick a fund which will generate genuine alpha.

The Year of the Activist Hedge Fund

April 2008 | Damien Park, President and CEO Hedge Fund Solutions


For the past year, people have speculated activist-style investing would go the way of the Internet boom and bust witnessed earlier this decade. However, despite a weaker economic outlook, shaky credit markets and a subprime turmoil upending financial markets worldwide, activist hedge funds continue to grow at remarkable rates in both numbers and in assets under management.

February 2008 Asset Flows Update

March 2008 | Eurekahedge


As hedge funds bounced back in February across the board, with most strategies recovering most or all of January’s lost ground (the composite Eurekahedge Hedge Fund Index advanced an impressive 2.9%), data of February 2008 assets under management (AuM) from early reporting funds to the Eurekahedge databases suggests that hedge funds globally raised their total assets to the tune of US$5 billion in performance-based growth, and another US$1.5 billion in net investor inflows. This translates to an estimated 0.4% rise in global hedge fund assets, to US$1.64 trillion . Asset flows during the past two months are summarised in Figure 1 below.

February 2008 Hedge Fund Performance Commentary

March 2008 | Eurekahedge


After a shaky start to the year, hedge funds bounced back in February across the board, with most strategies recovering most or all of January’s lost ground. The composite Eurekahedge Hedge Fund Index advanced an impressive 2.9%1, with all regions recording positive returns during the month. This was despite concerns surrounding a global economic slowdown (and fears of a recession in the US) weighing on most regional markets.

Key Trends in Funds of Hedge Funds

March 2008 | Eurekahedge


The 2008 edition of the Eurekahedge Global Fund of Hedge Funds Directory contains information on close to 2,400 funds1. Based on this and related information, we estimate the total size of the fund of funds universe at US$747 billion as of end-2007, up 20% from our end-2006 estimate and accounting for over 45% of global hedge fund assets (up from 43% a year ago). Judging by this and the performance of the Eurekahedge Fund of Funds Index (which rose a healthy 10% in each of the past two years), 2007 has, in the main, been a good year for the industry. The industry has seen impressive growth over the past decade – in terms of the number of funds as well as the size of assets – as can be seen from a comparison of year-end numbers charted in Figure 1 below.

Key Trends in the Takaful Landscape

March 2008 | Bernardo Vizcaíno, Eurekahedge


The Eurekahedge Islamic fund database has grown from its launch in 2006 to now encompassing information on more than 550 Shariah-compliant funds, keeping up with an industry that saw 131 new launches in 2007 alone. Despite this healthy growth, takaful-dedicated funds are few and far in between (with notable examples in Malaysia, Singapore and Bahrain). However, this doesn’t properly reflect the emergence of takaful and its importance in the overall Islamic funds industry.

Next Generation Brand Management for Hedge Funds

March 2008 | Miroslaw Izienicki, President Fifth Capital Ltd


With the growth of interest in alternative investments, pressure continues for increased transparency in the operation of hedge funds. As the essence is to minimise opportunities for organisational stakeholders to experience negative surprise, good governance can only be achieved through complete accountability for the factors that drive: i) the search for investment opportunities and ii) the resolution of investment decisions in the face of risk and uncertainty.

January 2008 Hedge Fund Performance Commentary

February 2008 | Eurekahedge


The composite Eurekahedge Hedge Fund Index fell 3.1%1, posting one of its worst monthly returns in the last several years. The rough start to the year came about as hedge funds across the board had to contend with margin calls amid steep declines in global equities; the MSCI World Index shed 7.7% on the month, with major regional equity indices posting similar losses (Topix -8.8%; S&P 500 -6.1%; FTSE -8.9%; MSCI Emerging Markets -12.6%).

Key Trends in Latin American Hedge Funds

February 2008 | Eurekahedge


The hedge fund industry in 2007 in Latin America continued on its course of impressive growth over the last few years, in an environment of favourable economic conditions and markets that were increasingly resilient to turbulence in the global economy. Industry assets nearly doubled in the last two years alone and it also turned in some of the best gains among hedge funds globally (the Eurekahedge Latin American Hedge Fund Index has bested all regional Eurekahedge performance indices in terms of annualised returns over the last seven years at 20.4%).

2007 Asset Flow Report

February 2008 | Eurekahedge


This inaugural edition of the Eurekahedge asset flow report collates historical assets under management (AuM) information on a sample of close to 6,400 hedge funds and 2,700 funds of hedge funds listed in the Eurekahedge Alternative Investment databases, in an effort to estimate the size and nature of asset flows in the global hedge fund industry.

2007 Hedge Fund Performance Commentary – Year in Review

January 2008 | Eurekahedge


On the whole, 2007 has been yet another good year for hedge funds, with the composite Eurekahedge Hedge Fund Index up a solid 13.6%. This compares favourably with performance during the last three calendar years – 14.4% (2006), 12.2% (2005) and 10.5% (2004). The year’s performance has weathered credit-related woes and the attendant risk aversion, and drying up of liquidity in the underlying markets, which manifested themselves early in the third quarter of 2007. The ensuing down month (August; -1.9%) was one of only two in the last twelve. The other negative month was November (-2%), largely owing to profit-booking after a pro-active Federal Reserve, and a larger-than-expected 50 bps cut in the interest rates mid-September led to a return of optimism into the markets during the following months.

Hedge Fund Honchos Look To 2008

January 2008 | Hung Tran, FINalternatives


While a number of hedge fund managers this year made astronomical gains shorting subprime mortgages, some believe that the trade may be on its last leg. In fact, they say there are more opportunities to be had in the coming year in higher-grade mortgage securities as well as in the little-known master limited partnership space and the sexier alternative energy market.

Risk-managing Japanese Hedge Funds

January 2008 | Simon Osborne, Asian Investor


In Japan, hedge funds are subject to the highest degree of regulation in Asia, but risk management remains an inscrutable practice. In America, implementation of Basel II is hardly witnessed. In Western Europe, it is not present at all. Yet it is alive and kicking in Japan, and three of the megabanks command IRB status under the Basel II rules. That means the directors of those banks are supposed to understand the nuances of its risk implications. Assuming that they do understand their risk portfolios might be a case of 'Emperor’s New Clothes'. The knee-jerk reaction to Basel II caused a flight from hedge fund investment last year.

All Change as Middle East Gets Out With the Old, In With the New

January 2008 | Solomon Teague, Hedge Funds Review


The Middle East is still better known for its wealthy investors than for its resident hedge fund community, but there are hedge funds operating in the region, hoping to capitalise on proximity to some of the world’s wealthiest investors. Kevin Birkett, asset and fund management director at the Dubai Financial Services Centre (DIFC) notes there are already two small funds present in the DIFC. Local markets are prohibitive for them: it is not possible to short and although there are some synthetic products available they are not liquid enough to be really appealing to hedge funds.

November 2007 Hedge Fund Performance Commentary

December 2007 | Eurekahedge


fter two consecutive positive months amid rising risk appetites and rallying markets, hedge funds across the board gave back some of these gains in November, with the composite Eurekahedge Hedge Fund Index down 1.6%. A key factor in this market turn was re-emerging concerns over problems in the US housing and subprime markets, as it became apparent that the losses suffered by some of the large global financial firms were far greater than expected. This led to large-scale risk aversion among market participants.

Cloning Comes Alive

December 2007 | Narayan Naik, London Business School


It has been a self-serving idea for hedge fund managers and many will have profited extensively by it. If a hedge fund manager delivers genuine alpha performance, he can charge substantial fees in return. But the problem is that not all hedge fund managers have consistently delivered A-grade – or alpha – returns to investors, despite hanging onto their often inflated fees. Sheep in wolves’ clothing? Professor Narayan Naik of London Business School thinks, based on empirical evidence, that this is the case for many hedge fund managers.

Hedge Fund Code of Practice

December 2007 | Dubai Financial Services Authority


This Code of Practice (“the Code”) sets out best practice standards for Operators of Hedge Funds in the DIFC (ie Operators of both Public and Private Domestic Hedge Funds). These are designed to address risks inherent in the operation of Hedge Funds and are set out under 9 Principles as follows:

October 2007 Hedge Fund Performance Commentary

November 2007 | Eurekahedge


Hedge funds in October had yet another terrific run, with returns upwards of 2% almost across the board. The composite Eurekahedge Hedge Fund Index rose 3.3% for the month, taking the year-to-date gains (15%) past those achieved during the entire year in 2006 (14.4%). Equity- and commodity-focused strategies drove this robust performance during the month, as expectations of further cuts in US interest rates, and the consequent weakening of the US dollar against major currencies, lent strong support to the respective underlying markets.

Building Bridges: Hedge Fund Administrators Prepare For the Future

November 2007 | Jonathan Shazar, FINalternatives


Institutional investors represent an ever-increasing share of hedge fund assets, bringing about a sea-change in the way hedge funds – and hedge fund administrators – do business. “Investors are demanding more frequent reporting and greater transparency, and that’s the biggest change I’ve seen in the industry,” Christine Waldron, vice-president of alternative investment products at US Bancorp, says. “Institutions are driving great accountability and frequency of reporting.”

Equity Long/Short Hedge Funds: How Much Alpha Do They Deliver?

November 2007 | Laurent Favre, AlternativeSoft


In this article, we computed the average alpha of 651 equity long/short hedge funds. We found that, on average, the average annualised alpha per equity long/short hedge fund is 8.8% and the average annualised alternative beta premium per equity long/short hedge fund is 5.0%. This means that on average, the alpha is higher than the alternative beta, during the period 2002 to 2007.

What to Look for in an Independent Director

November 2007 | Geoff Ruddick, International Management Services Ltd


One of the first considerations when looking for an independent director is the underlying reason behind your search. Probably, given the spectacular hedge fund and corporate collapses in recent years, part of the reason is the desire for effective corporate governance. In today’s environment, corporate governance is no longer a luxury, but a necessity, and often a requirement. Regulators and exchanges are increasing their scrutiny and investors are demanding it – so should you.