The benchmark Eurekahedge Hedge Fund Index was down 0.56% in May 2022 and down 2.66% in 2022. Total assets under management decreased by US$21.5 billion during the month – the sector witnessed performance-based decline of US$2.4 billion while registering net asset outflows of US$19.1 billion.
The Eurekahedge Hedge Fund Index declined -0.56% in May, trailing behind the S&P 500 which ended the month roughly flat. Heightened market volatility persisted through the month as the market continues to face strong headwinds from the ongoing war in Ukraine, COVID-19 pandemic, rising inflation and the potential for a faster pace of monetary policy tightening, fanning concerns that the economy might be moving towards a recession in the near future.
The Eurekahedge Hedge Fund Index declined -0.56% in May, trailing behind the S&P 500 which ended the month roughly flat with a gain of 0.01%. The persistence of high inflation, hawkish monetary policy and the Russia-Ukraine conflict continued to dampen investor sentiment over the month.
Multi-manager funds were down 3.58% over the first four months of 2022, trailing behind their single-manager counterparts who declined 2.12% over the same period. Multi-manager funds have been facing headwinds over the first four months of 2022 as the global economy faced an unprecedented confluence of headwinds stemming from the Russia-Ukraine war, ongoing supply chain disruptions which were exacerbated by the widening COVID-19 lockdowns in China and aggressive tightening of monetary policy by global central banks to combat rising inflation.
The return of market volatility driven by the combination of the restrictive monetary policies of global central banks to tame multi-decade high inflation rates and the geopolitical conflict in Eastern Europe has pushed a particular hedge fund strategy back into the spotlight: the CBOE Eurekahedge Tail Risk Hedge Fund Index which returned 6.82% over the first five months of 2022
Eurekahedge’s Fund of hedge funds infographic sums up the industry as at June 2022. Find out more about Fund of hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.