Research

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.

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.

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.

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.

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

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,

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.

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.

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.

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 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.

Hedge Fund Performance Commentary

October 2017 | Eurekahedge


Hedge funds were up 0.42% in September while underlying markets, as represented by the MSCI AC World Index (Local), gained 2.17% during the month. September was marked by strong performance in US equities on the back of Trump’s tax reform proposal with the S&P 500 ending the month up 1.93% while the DJIA gained 2.08%.

Hedge Fund Performance Commentary

September 2017 | Eurekahedge


Hedge funds continued their uptrend and gained 0.73% in August, outperforming underlying markets as represented by the MSCI AC World Index (Local) which gained 0.15% during the month. Almost all hedge fund strategies ended the month in the green, with CTA/managed futures up 1.24% and macro hedge funds up 1.04% delivering the strongest gains. Across regional mandates, emerging markets focused hedge funds continued to post strong gains relative to their developed market peers contributed in part by the depreciating US dollar which is down almost 9.34% year-to-date.

Hedge Fund Performance Commentary

August 2017 | Eurekahedge


Hedge funds extended their gains for the year and were up 0.88% during the month of July based on preliminary numbers. Meanwhile, underlying markets, as represented by the MSCI AC World Index (Local), were up 1.64% over the same period. Returns were largely positive across the board with all key regional mandates in the green as emerging market mandates (excluding Eastern Europe & Russia) delivering the best returns. The US economy continues to march along at a steady pace, with a weakening USD and the gain in oil prices spurring inflation expectations and making a stronger case for a Fed rate hike later this year.

Hedge Fund Performance Commentary

July 2017 | Eurekahedge


Hedge funds ended their five-month winning streak, down 0.07% during June based on preliminary numbers for the month. The average return of the global hedge fund was pulled into negative territory in June as developed market mandates underperformed their emerging market peers, with trend-following and macro strategies lagging behind the pack. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) were up 0.18% over the same period.

Hedge Fund Performance Commentary

June 2017 | Eurekahedge


Hedge funds posted their fifth consecutive month of gains this year, up 0.33% during the month of May. Meanwhile, underlying markets, as represented by the MSCI AC World Index (Local) which were up 1.09% over the same period. Equity markets performed well this month with strength led by developed markets.

Hedge Fund Performance Commentary

May 2017 | Eurekahedge


Hedge funds posted their fourth consecutive month of gains this year, up 0.64% during the month of April. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) were up 1.17% over the same period. The Macron vs. Le Pen run-up to the French presidential election provided some relief for the markets especially for European equities as expectations for a Macron victory in the second round seemed likely.

Hedge Fund Performance Commentary

April 2017 | Eurekahedge


Hedge funds gained 0.34% during the month of March, with their first quarter performance up 2.29%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 0.79% in March and are up 5.06% in the first quarter of the year. March was marked by investor scepticism over the Trump administration as proposed healthcare reforms to replace Obama’s Affordable Care Act did not meet intended outcomes.

Hedge Fund Performance Commentary

March 2017 | Eurekahedge


Hedge funds gained 0.97% during the month of February. Meanwhile underlying markets as represented by the MSCI AC World Index (Local) gained 2.72% over the same period. February was marked by strong performance in US equities on the back of Trump’s fiscal and monetary policy announcements with the S&P 500 ending the month up 3.78%. Economic data out of the US also shed a positive light on the region with a pick-up in inflation bolstered by retail activity.

Hedge Fund Performance Commentary

February 2017 | Eurekahedge


Hedge funds started the year on a positive note, up 0.87% during the month of January. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 1.49% over the same period. Among regional mandates, Latin American hedge fund managers topped the tables, gaining 3.73% while event driven managers posted the best returns, up 2.02% among strategic mandates.

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%.

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%.

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.

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.

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.

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.

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.

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.

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.

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%.

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.

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.

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%.

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.

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.

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.

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.

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%.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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%.

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.

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.

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%.

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.

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%.

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.

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%.

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%.

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.

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.

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.

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 .

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.

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.

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.

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.

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.

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.

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%.

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.

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%.

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.

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%.

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.

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.

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.

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.

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.

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.

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%

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.

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.

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%.

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%.

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).

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.

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%.

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%.

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.

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.

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.

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.

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.

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.

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%.

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.

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%.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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 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.

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.

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%).

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.

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.

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.

September 2007 Hedge Fund Performance Commentary

October 2007 | Eurekahedge


After a difficult August, hedge funds did a virtual about-face in September – the composite Eurekahedge Hedge Fund Index rose an impressive 3.8%, its best showing in over 12 months – as the Federal Reserve took a pro-active stand against risk aversion and dwindling liquidity in the markets, and cut its Fed Funds rate by a larger-than-expected 50 bps mid-month. This triggered a global rally in the equity markets (the MSCI World Index was up 4.6% for the month) and tightened credit spreads.

August 2007 Hedge Fund Performance Commentary

September 2007 | Eurekahedge


The composite Eurekahedge Hedge Fund Index fell 1.8% for the month of August, shedding some of its gains made earlier during the year and bringing year-to-date returns to a still healthy 7.9%. The decline during the first half of the month was almost across the board (most strategy allocations and all regional allocations finished the month negative), given heightened credit concerns, market volatility and risk aversion. However, central bank intervention mid-month somewhat stemmed the sharp declines earlier in the month, stabilising markets towards month-end.

July 2007 Hedge Fund Performance Commentary

August 2007 | Eurekahedge


The Eurekahedge Hedge Fund Index advanced a healthy 1.3%1 during July, even as weakness in the credit markets lowered risk appetites and triggered sharp sell-offs in equities and high-yielding currencies towards the month’s close. The ensuing flight to safe-haven assets, coupled with tame US inflation data, spurred rallies in bond prices and widened credit spreads; the MSCI World Equity Index was down 2.2% for the month, while the Citi World Government Bond Index rose 3% over the same period.

June 2007 Hedge Fund Performance Commentary

July 2007 | Eurekahedge


The composite Eurekahedge Hedge Fund Index advanced 1.7%1 for June, bringing returns for the first half of 2007 to a robust 9%. Despite choppy markets, the month saw hedge funds turning in healthy gains almost across the board, as inflationary pressures and continued weakness in the sub-prime mortgage market drove volatility up. One of the major market events during the month concerned losses at two Bear Stearns hedge funds in the high-yield space. These and other concerns about high yields triggered reversals in the US and European equity and bond markets. Emerging market, and more specifically, Asian equities, on the other hand, proved more resilient. These are broadly reflected in the performance of regional hedge fund mandates as seen in the graph below.

May 2007 Hedge Fund Performance Commentary

June 2007 | Rajeev Baddepudi, Eurekahedge


May spelled yet another good month for most hedge fund strategies, as the composite Eurekahedge Hedge Fund Index returned a solid 2.5% on the back of soaring equities, abundant liquidity in the markets, a still-buoyant M&A landscape, and positive economic and corporate earnings data.

April 2007 Hedge Fund Performance Commentary

May 2007 | Rajeev Baddepudi, Eurekahedge


The composite Eurekahedge Hedge Fund Index is up a robust 2.4% for the month of April, bringing the year-to-date returns to 5%. Following the market correction of late-February/early-March, financial markets globally continued their strong recovery, with the notable exception of Japanese equities, which were largely flat at month-end.

March 2007 Hedge Fund Performance Commentary

April 2007 | Rajeev Baddepudi, Eurekahedge


The Eurekahedge Hedge Fund Index was up a modest 0.6% for the month of March. Market movements during the first half of March were very much a continuation of those towards end-February, with heightened volatility and investor uncertainty. The markets, however, stabilised mid-month, as valuations became attractive once again and as the FOMC meeting announced that the target federal funds rate would remain unchanged (with a later clarification that inflationary risks remain its main focus). For instance, the MSCI World (Equity) Index shed nearly 3% in the month’s first three days of trading, but eventually closed the month up 1.6%.

February 2007 Hedge Fund Performance Commentary

March 2007 | Rajeev Baddepudi, Eurekahedge


The Eurekahedge Hedge Fund Index ended February up 0.6%, doing reasonably well despite choppy markets towards the month’s close, as worldwide equity markets witnessed sharp drops of between 4% and 9%. Some of the key drivers of this decline were negative comments emanating from (former Federal Reserve Chairman) Alan Greenspan, continuing geo-political tensions in the Middle East, the Chinese government’s attempt to slow growth by making it more difficult to purchase equities on margin, and a general perception that global markets have been overdue for a correction.

January 2007 Hedge Fund Performance Commentary

February 2007 | Eurekahedge


Hedge funds got off to a strong start in 2007 on the back of a healthy run-up to the end of 2006, with January returns of the composite Eurekahedge Hedge Fund Index at 1.2%. Performance was broad-based as well, with most regional and strategic mandates returning close to or upwards of 1%, as profits came from across several asset class markets.

November 2006 Hedge Fund Performance Commentary

December 2006 | Rajeev Baddepudi, Eurekahedge


The composite Eurekahedge Hedge Fund Index returned an impressive 2.6% in Nov (and 11.5% for the year to date) with equally promising, if not better, returns among hedge fund strategies and regional mandates across the board. The key market event during the month was the declining US dollar (USD). During the month, the USD broke out of recent ranges and reached multi-year lows against a range of currencies, owing to a host of reasons. Given the slowdown in US economic growth, investors expecting the Federal Reserve to begin loosening its monetary policy in 2007, and the attendant benign inflationary outlook, the markets imply a narrowing of interest rate differentials and the US advantage of positive interest rate differentials continues to weaken.

October 2006 Hedge Fund Performance Commentary

November 2006 | Rajeev Baddepudi, Eurekahedge


The composite Eurekahedge Hedge Fund Index returned a robust 1.81% for the month of October and 8.5% for the year to date. The month’s performance was driven by a strong rally in equities on the back of a healthy earnings season in Q3 (the MSCI World Index returned 3.7% for the month), and to a lesser extent, by a rally in metals (owing to constrained supply conditions). On the other hand, some of the economic data emanating from the US for Q3 2006 – multi-year lows in the growth in residential housing constructions (-17%) and GDP growth estimates (1.6%) – triggered reversals in global fixed income and currency markets; bond prices rallied and the US dollar weakened on expectations of lower future US interest rates.

September 2006 Hedge Fund Performance Commentary

October 2006 | Rajeev Baddepudi, Eurekahedge


The Eurekahedge Hedge Fund Index closed the month of September up 6 basis points (and 6.3% year to date) amidst a moderately slowing US economy, a sharp drop in energy and commodity prices, and continued strength in equities and treasuries as the markets continued to conjecture that the Federal Reserve is done raising rates. There was also a major hedge-fund-industry-specific market event during the month – the liquidation of the significant portfolio of Amaranth Advisors, which was hurt by plummeting natural gas prices – and this played catalyst to a spate of liquidity-driven selling that proved beneficial to a few hedge fund strategies such as arbitrage and distressed debt, especially among North American managers.

August 2006 Hedge Fund Performance Commentary

September 2006 | Rajeev Baddepudi, Eurekahedge


Despite some volatility on account of the Lebanon crisis, the hurricane forecasts, the London terror threat, and weak US economic data, global financial markets continued to recover in August on the back of progressively better (or rather less negative) returns seen over the previous three months. The Eurekahedge Hedge Fund Index returned 0.8% for the month of August and 6.4% for the year to August. The month saw profitable opportunities in most asset classes, as global inflation fears subsided and the markets began to anticipate the end of the Federal Reserve’s monetary tightening cycle. The Fed’s pause came amid signs of an economic slowdown in the US and forecasts that inflationary pressures will ease gradually.

July 2006 Hedge Fund Performance Commentary

August 2006 | Rajeev Baddepudi, Eurekahedge


After yet another month of stagflationary pressures in July – inflationary concerns coupled with fears over a possible slowdown in the economy – the Eurekahedge Hedge Fund Index fell (-0.4%) for the third consecutive month (albeit at a progressively flatter rate). Global equities were characterised by volatility similar to June’s market movements – falling during the first half of the month and recovering in the latter half – with the net effect of closing the month nearly flat. The MSCI World Equity Index was up 0.6% for the month, while the S&P 500 was up 0.5%. Commodities and currencies also saw similar sharp reversals mid-month. Funds also suffered from the rebound in international bond markets, as investors anticipated a pause in the cycle of rate hikes in European and American short-term interest rates.

June 2006 Hedge Fund Performance Commentary

July 2006 | Rajeev Baddepudi, Eurekahedge


The market environment in June was not much different from that in May – inflationary concerns and heightened interest rate expectations continued to dominate market events. This translated into a difficult trading environment across most asset classes – declining prices in the first half of the month and a rebound in the latter half. Consequently, most global indices had a flat to marginally positive/negative month in June, reflected in the performance of the composite Eurekahedge Hedge Fund Index (-0.5%)1, the directional Eurekahedge Macro Hedge Fund Index (-0.1%), as also most regional indices (refer graph below).

May 2006 Hedge Fund Performance Commentary

June 2006 | Rajeev Baddepudi, Eurekahedge


The market environment in June was not much different from that in May – inflationary concerns and heightened interest rate expectations continued to dominate market events. This translated into a difficult trading environment across most asset classes – declining prices in the first half of the month and a rebound in the latter half. Consequently, most global indices had a flat to marginally positive/negative month in June, reflected in the performance of the composite Eurekahedge Hedge Fund Index (-0.5%)1, the directional Eurekahedge Macro Hedge Fund Index (-0.1%), as also most regional indices (refer graph below).

March 2006 Hedge Fund Performance Commentary

May 2006 | Rajeev Baddepudi, Eurekahedge


Hedge fund returns rebounded in March after a flat month in February – the benchmark Eurekahedge Hedge Fund Index1 rose a handsome 2% – and resumed the uptrend seen in the preceding months on the back of rising markets, closing the first quarter of 2006 on a very positive note (+5.5%). The month's performance came amidst favourable markets characterised by high levels of corporate activity, rising equity markets and tightening credit spreads.

February 2006 Hedge Fund Performance Commentary

April 2006 | Rajeev Baddepudi, Eurekahedge


After the robust returns seen in the past few months, markets and investors paused for a breather in February, and this was reflected in the performance of the Eurekahedge Hedge Fund Index (up 0.2%). The key drivers of hedge fund returns during the month were bullish emerging markets, market neutral strategies and special situations.

January 2006 Hedge Fund Performance Commentary

March 2006 | Rajeev Baddepudi, Eurekahedge


Hedge funds got off to a running start to the year, with the Eurekahedge Hedge Fund Index rising a handsome 3.2% for the month of January. With the exception of Japan, which had to contend with choppy markets intra-month, all the regional indices returned upwards of 3% for the month. Global investors anticipating an end to the Fed tightening cycle in the near term, spurred equity markets across the board onto healthy gains.

2005 Hedge Fund Performance Commentary

February 2006 | Rajeev Baddepudi, Eurekahedge


2005 was a very good year for hedge funds all round, as most Eurekahedge regional indices clocked returns upwards of 10% for the year. The benchmark Eurekahedge Hedge Fund Index returned 10% for the year. After a sluggish first quarter and some market turbulence in April and May, most of the global hedge fund universe took off in June and remained buoyant for the rest of the year, particularly so in the emerging markets and Japan. The only exception was the month of October, which witnessed a short-term, end-of-the-year profit-taking.

November 2005 Hedge Fund Performance Commentary

January 2006 | Rajeev Baddepudi, Eurekahedge


Following on the heels of a month that witnessed a combination of profit-taking and short-term market correction, November saw hedge funds bouncing back into positive territory, with most Eurekahedge regional and strategy indices recording returns upwards of 2%. Investors were visibly buoyed by robust economic data, Japan's positive turn, moderate inflation in the US and the Federal Reserve's apparently diminishing concerns about rising inflation. The benchmark Eurekahedge Hedge Fund Index returned a handsome 2.2% for the month.

October 2005 Hedge Fund Performance Commentary

December 2005 | Rajeev Baddepudi, Eurekahedge


October turned out to be a poor month for hedge funds across the board. In a marked departure from the positive to spectacular returns seen in the last five months, almost all the Eurekahedge regional indices took a southward turn. The exceptions were Japanese hedge funds (the Eurekahedge Japan Hedge Fund Index was up an impressive 1.7% for the month), and to a much lesser degree, onshore Latin American hedge funds (whose corresponding index was up 0.6% during the same period). The North American and European indices, on the other hand, registered negative returns of 1.3% and 1.8% respectively.

September 2005 Hedge Fund Performance Commentary

November 2005 | Rajeev Baddepudi, Eurekahedge


Hedge funds had a spectacular run in September, reflecting the significant boost to market activity from a sluggish August. Most Eurekahedge regional hedge fund indices were up on the right side of 3% for the month, as is evident from the graph below. Even the under-performing region, North America, registered a spike in its return gradient, rising 1.27% to August's 0.56%.

August 2005 Hedge Fund Performance Commentary

October 2005 | Rajeev Baddepudi, Eurekahedge


August was a good month for hedge funds on the whole, with most of the Eurekahedge regional indices up by over 1% on average. The month's events were dominated by the yet-to-be fully evaluated effects of Hurricane Katrina, its ripple effects on energy prices (up by about US$10 per barrel from US$61 at the start of the month, breaching the US$70 mark) and global bond yields, as well as on economies with a significant proportion of their budgets going into fuel subsidies, in the Asia-Pacific region. A case in point is Indonesia, whose fuel subsidies account for about 30% of its budget spending.

July 2005 Hedge Fund Performance Commentary

September 2005 | Shashi K. Agarwala, Eurekahedge


Despite an eventful month with terrorist attacks in London, rising oil prices, yuan revaluation and benign US employment figures, hedge funds maintained their good performance across the globe in July following a recovery month in June. European investing hedge funds again came up with the best performance across all markets with the Eurekahedge European All Strategies Hedge Fund Index registering a 2.07% return. North America and Asia ex-Japan and North American markets were the two next best performers in terms of rankings with returns of 1.89% and 1.84% respectively.

June 2005 Hedge Fund Performance Commentary

August 2005 | Eurekahedge


Hedge fund performance across the globe perked up in June following a mediocre month in May. According to the Eurekahedge Hedge Fund Indices, the top three markets were Europe (+1.76%), Japan (+1.49%) and North America (+1.47%). Comparatively, Japan was down 0.17% in May and Europe was up 0.32% over the same period.

Asian Hedge Fund Market Commentary

December 2004 | Eurekahedge


Global markets breathed a sigh of relief after the US presidential election, and October returns marked the beginning of renewed confidence in a sustainable recovery in the United States and in the Asia Pacific. A steady search for profits continued to push share prices cautiously higher. In line with these increases was the ABN AMRO Eurekahedge Asia-ex Japan Index, which was up 1.04% for the month of October.

Special Commentary: "If it ain't hard it ain't right"*

December 2003 | Mari Kooi, Wolf International


This quarter's special market commentary begins with a quote from one of the market's most successful hedge fund managers. The quote implies that only hard decisions, or those decisions that are not obvious, create excess alpha. The topic of this quarter's piranha soup is equities and the decisions in that space are not obvious. The recovery period is behind us and as we move into the cycle of monetary based speculation, the decisions get harder.

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