Hedge funds remain on track to finish the year on a high note as the Eurekahedge Hedge Fund Index gained 0.40%1 in November, making it the fifth consecutive month of positive returns. The month was marked by volatile market conditions as investor sentiment changed suddenly from the bullish leanings continuing from October to reignited fears of the European debt contagion. The MSCI World Index2 was down 2.35% in November.
Total assets under management registered a slight decline of US$2.55 billion3, bringing the total size of the industry to US$1.64 trillion. Asset flows for the month were marginal to slightly negative, with net outflows of US$0.19 billion while performance-based declines accounted for losses of US$2.36 billion. It should be noted here that the Eurekahedge Hedge Fund Index is a non-asset-weighted mean-return index and as such, the change in assets due to performance can at times go contrary to index movements depending on the performance of larger hedge funds.
