Indices

The Eurekahedge Hedge Fund Index was down 0.57% in September 2020, outperforming the global equity market as represented by the MSCI ACWI (Local), which lost 2.71% over the same period. Global equities ended their five-month rally over mounting concerns around Covid-19 cases globally which threaten to stall economic recovery given how ‘lockdowns’ continue to be the only modus operandi for governments in the absence of a vaccine. Markets are also beginning to worry over the limits of central bank monetary easing which has resulted in stretched valuations and limited real recovery on the main street, all this at a time when the second wave of Covid-19 is making landfall while in the US a consensus around fiscal policy easing is nowhere to be seen until the elections are over. The tech-heavy NASDAQ and S&P 500 were down 5.16% and 4.10% during the month, respectively. In the UK, the passage of the controversial post-Brexit bill in the House of Common, which could breach parts of the terms of the EU withdrawal agreement resulted in the weak performance of the British Pound, which was down 3.37%, while the FTSE 100 retreated 1.63% in September. Returns were mostly negative across geographic mandates in September. Fund managers focusing in Europe were largely flat, outperforming their North American and Asia ex-Japan peers who were down 0.41% and 0.11%, respectively. Across strategies, event driven, distressed debt and arbitrage fund managers were up 0.82%, 0.55% and 0.24% respectively throughout the month.

Roughly 42.5% of the underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in September, and 22.3% of the hedge fund managers in the database were able to maintain double-digit returns over the first three quarters of 2020.