Indices

The Eurekahedge Hedge Fund Index gained 1.52% in December, supported by the underlying equity market performance which pushed the MSCI ACWI (Local) 2.57% higher over the same period. The markets reacted positively to the encouraging geopolitical development surrounding the US-China trade talks. The two economic powerhouses officially reached an agreement which avoided the additional tariffs on Chinese imported goods originally slated for December 15. In return, China agreed to purchase more US agricultural products, tighten intellectual property protection, and end practices of forced technology transfer from US companies. The resulting risk-on sentiment boosted major US equity benchmarks to new all-time highs during the month. Over in Europe, UK equities outperformed their European peers, supported by the passage of the Brexit Withdrawal Agreement. The FTSE 100 edged 2.67% higher during the month. On the other hand, positive trade developments, monetary stimulus and strong macroeconomic data pushed Asian equity markets higher, with the Hang Seng Index and the Shanghai Composite Index up 7.00% and 6.20% respectively. Returns were positive across geographic mandates in December, with fund managers focusing on Asia ex-Japan up 2.36%, outperforming their North American and European peers who were up 1.74% and 1.65% respectively. Japanese hedge funds returned 1.25% over the month of December, underperforming their regional peers. Across strategies, event driven, long/short equities and multi-strategy fund managers were up 2.39%, 2.17% and 1.83% respectively throughout the month.

Roughly 74.7% of the underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in December, and 38.0% of the hedge fund managers in the database were able to maintain double-digit returns in 2019.