Hedge funds advanced in August as global equities rallied, driven by the dovish stance of the Federal Reserve |
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The Eurekahedge Hedge Fund Index was up 0.80% in August 2021, trailing behind the global equity market as represented by the MSCI ACWI (Local) which gained 2.45% over the same period. Despite persistent concerns over the spread of the Delta variant and inflation, global equities were supported by the dovish comments from Federal Reserve chairman Jerome Powell made at the Jackson Hole symposium. Powell acknowledged that the US economy had made progress on some key economic indicators such as inflation and unemployment but said that tapering may start at year’s end only if there is substantial further progress in the economic recovery. This boost to sentiment provided strong support to US equities with the S&P 500 and NASDAQ gaining 2.90% and 4.00% respectively. Over in Europe, returns were positive among equity benchmarks in the region with the Euro Stoxx 50 taking the lead with a gain of 2.62%. Despite a rise in COVID-19 infections, the high vaccination rate in most large eurozone countries have enabled their governments to avoid costly lockdowns and keep their economies largely open. Returns were mostly positive across geographic mandates in August with Eastern Europe & Russia hedge funds leading the group with a return of 2.55% while emerging markets and Latin American hedge funds trailed behind their regional peers with returns of -0.05% and -0.99% respectively. Across strategies, event driven and long/short equities outperformed their strategic peers with returns of 1.17% and 1.02% respectively throughout the month. |
Below are the key highlights for the month of August 2021 |
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Index of the Month |
Aug 2021* |
2021 Returns | 2020 Returns |
---|---|---|---|
Eurekahedge India Hedge Fund Index | 5.98 | 26.26 | 19.88 |
Main Indices
Main Eurekahedge Indices |
Aug 2021* |
2021 Returns | 2020 Returns |
---|---|---|---|
Eurekahedge Hedge Fund Index | 0.80 | 8.61 | 12.79 |
Eurekahedge Fund of Funds Index | 1.20 | 6.83 | 11.80 |
Eurekahedge Long-only Absolute Return Fund Index | 1.93 | 13.78 | 12.80 |
Regional Indices
Eurekahedge Regional Indices |
Aug 2021* |
2021 Returns | 2020 Returns |
---|---|---|---|
Eurekahedge North American Hedge Fund Index | 0.79 | 11.98 | 15.55 |
Eurekahedge European Hedge Fund Index | 0.97 | 7.72 | 4.64 |
Eurekahedge Eastern Europe & Russia Hedge Fund Index | 2.55 | 12.67 | -2.59 |
Eurekahedge Japan Hedge Fund Index | 1.72 | 8.55 | 1.61 |
Eurekahedge Emerging Markets Hedge Fund Index | -0.05 | 4.26 | 16.86 |
Eurekahedge Asia ex Japan Hedge Fund Index | 0.89 | 6.55 | 23.06 |
Eurekahedge Latin American Hedge Fund Index | -0.99 | 1.09 | 4.06 |
Eastern Europe & Russia hedge fund managers posted the highest return 2.55% in August, outperforming their North American and European counterparts who returned 0.79% and 0.97% respectively. The robust performance of the MSCI Emerging Eastern Europe Index IMI which returned 4.30% provided strong support to Eastern Europe & Russia hedge funds. Japanese hedge fund managers were in second place with an August return of 1.72%, supported by the 2.95% return of the Nikkei 225 which has been achieved despite growing concerns over capacity in Japanese hospitals because of a surge in COVID-19 infections in Japan.
Strategy Indices
Returns were positive across strategic mandates in August with the event driven and long short equities mandates gaining 1.17% and 1.02% respectively, extending their year-to-date returns to 11.11% and 10.61% respectively. On the other end of the spectrum, the macro and CTA/Managed Futures mandates returned 0.19% and 0.18% respectively in August, extending their year-to-date returns to 4.00% and 6.53% respectively.
Table 1: Strategy return map
Eurekahedge Strategy Indices |
Aug 2021* |
2021 Returns | 2020 Returns |
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Eurekahedge Arbitrage Hedge Fund Index | 0.35 | 3.32 | 11.69 |
Eurekahedge CTA/Managed Futures Hedge Fund Index | 0.18 | 6.53 | 7.43 |
Eurekahedge Distressed Debt Hedge Fund Index | 0.74 | 12.07 | 6.76 |
Eurekahedge Event Driven Hedge Fund Index | 1.17 | 11.11 | 8.73 |
Eurekahedge Fixed Income Hedge Fund Index | 0.57 | 4.33 | 5.20 |
Eurekahedge Long Short Equities Hedge Fund Index | 1.02 | 10.61 | 17.88 |
Eurekahedge Macro Hedge Fund Index | 0.19 | 4.00 | 11.60 |
Eurekahedge Multi-Strategy Hedge Fund Index | 0.35 | 6.65 | 7.81 |
Eurekahedge Relative Value Hedge Fund Index | 0.58 | 6.81 | 9.47 |
CBOE Eurekahedge Long Volatility Hedge Fund Index | -1.27 | -8.05 | 25.41 |
CBOE Eurekahedge Relative Value Volatility Hedge Fund Index | 0.76 | 1.73 | 5.66 |
CBOE Eurekahedge Short Volatility Hedge Fund Index | 2.95 | 11.46 | -0.80 |
CBOE Eurekahedge Tail Risk Hedge Fund Index | -2.27 | -8.30 | 34.84 |
Eurekahedge Equity Long Bias Hedge Fund Index | 1.56 | 13.49 | 14.81 |
Eurekahedge Equity Market Neutral Hedge Fund Index | 0.03 | 5.73 | 3.69 |
Eurekahedge Trend Following Index | -0.09 | 8.65 | 11.29 |
Eurekahedge FX Hedge Fund Index | 0.59 | 2.86 | 0.95 |
Eurekahedge Commodity Hedge Fund Index | 0.21 | 10.13 | 11.19 |
Eurekahedge Crypto-Currency Hedge Fund Index | 23.59 | 145.77 | 200.17 |
Eurekahedge AI Hedge Fund Index | 0.14 | 1.43 | 11.24 |
Eurekahedge ILS Advisers Index | -0.66 | 0.46 | 3.48 |
Eurekahedge Global Hedge Fund Indices by Fund Size |
Aug 2021* |
2021 Returns | 2020 Returns |
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Eurekahedge Small Hedge Fund Index (< US$100m) | 0.68 | 8.60 | 13.36 |
Eurekahedge Medium Hedge Fund Index (US$100m - US$500m) | 0.91 | 8.49 | 11.59 |
Eurekahedge Large Hedge Fund Index (> US$500m) | 0.80 | 7.54 | 7.15 |
Eurekahedge Billion Dollar Hedge Fund Index | 0.15 | 5.94 | 5.20 |
Eurekahedge Asset Weighted Indices |
Aug 2021* |
2021 Returns | 2020 Returns |
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Eurekahedge Asset Weighted Index – USD | 0.06 | 3.76 | 4.47 |
Eurekahedge TOP100 Asset Weighted Index – USD | 0.21 | 2.57 | 1.71 |
Eurekahedge TOP300 Asset Weighted Index - USD | -0.11 | 3.16 | 3.12 |
Asia-Eurekahedge Indices |
Aug 2021* |
2021 Returns | 2020 Returns |
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Eurekahedge Greater China Hedge Fund Index | -0.83 | 0.80 | 35.96 |
Eurekahedge India Hedge Fund Index | 5.98 | 26.26 | 19.88 |
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