The Eurekahedge Hedge Fund Index was up 0.03% in August1 while underlying markets as represented by the MSCI World Index2 gained 0.48% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 1.26% during the month followed by Latin American managers who were up 0.71%. Across strategies, distressed debt hedge funds led the table 1.71% returns followed by event driven hedge funds with 1.42%.
Final asset flow figures for July revealed that managers reported performance-based gains of US$20.7 billion while recording net asset outflows of US$7.5 billion. Preliminary data for August shows that managers have posted performance-based gains of US$1.4 billion while recording net outflows of US$1.4 billion, bringing the current assets under management (AUM) of the global hedge fund industry to a total of US$2.26 trillion.
Figure 1a: Summary monthly asset flow data since January 2012
Key highlights for August 2016:
- Hedge funds witnessed four consecutive months of outflows with investor redemptions totalling US$23.8 billion during this period. Total hedge fund assets grew by US$17.6 billion over the past eight months with the industry’s total assets currently standing at US$2.26 trillion.
- The US$800 billion long/short equity hedge fund space has seen investor redemptions of US$19.5 billion over four consecutive months ending August. The Eurekahedge Long Short Equities Hedge Fund Index is up 1.50% for the year.
- The US$1.5 trillion North American hedge fund industry has recorded performance-based gains of US$19.3 billion over the past three months whilst seeing net investor redemptions of US$8.6 billion simultaneously. Among developed market mandates, North American managers lead up 4.54% for the year.
- Redemptions have been picking up pace in the US$531.1 billion European hedge fund industry which saw four consecutive months of outflows totalling US$13.7 billion in the period ending August. The Eurekahedge European Hedge Fund Index is down 0.95% for the year.
- Within Asia Pacific, Japan dedicated strategies have been the worst performing, down 4.51% while India dedicated mandates have posted the best returns up 7.02% for the year. Broad Asia ex-Japan mandates are up a modest 1.54% with dedicated Greater China mandates down 2.28% for the year.
- The US$252 billion CTA/managed futures hedge fund industry recorded the strongest interest from investors this year, seeing US$12.0 billion inflows as of August 2016 year-to-date. The Eurekahedge CTA/Managed Futures Hedge Fund Index is up 1.98% year-to-date with its sub-group of commodity-focused strategies gaining 7.99% while trend following strategies are up 2.34%.
- Singapore-based Asian hedge funds led the table up 2.08% while Japan and Hong Kong based Asian hedge funds are in the red among key Asian hedge fund centres, down 2.50% and 2.27% respectively for the year. More on this in the 2016 Key Trends in Asian Hedge Funds report.
The full article is available in The Eurekahedge Report accessible to paying subscribers only.
Subscribers may continue to login as usual to download the full report and non-subscribers may email firstname.lastname@example.org to enquire on how to obtain the full research report.