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The Eurekahedge Report - July 2021

July 2021 | Eurekahedge


The benchmark Eurekahedge Hedge Fund Index was up 0.26% in June 2021 and up 8.09% in 2021. Total assets under management decreased by US$7.6 billion during the month – the sector witnessed performance-based losses of US$3.5 billion while registering net asset outflows of US$4.1 billion. The total size of the industry now stands at US$2,385.2 billion.

Asset Flows Update

July 2021 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 0.26% in June, trailing behind the global equity market as represented by the MSCI ACWI (Local) which gained 1.93% over the same period. Covid-related mobility restrictions in most developed markets continued to be progressively relaxed as vaccination rates rise, providing support to the reopening of their economies.

Hedge Fund Performance Commentary

July 2021 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 0.26% in June, trailing behind the global equity market as represented by the MSCI ACWI (Local) which gained 1.93% over the same period. Covid-related mobility restrictions in most developed markets continued to be progressively relaxed as vaccination rates rise, providing support to the reopening of their economies. The swift rebound in economic activity led to higher inflation in some countries, most notably in the United States where in June, the US consumer price index increased by 5.4% year-on-year – the sharpest 12-month inflation spike since August 2008. This has led to concerns that the continued higher inflation would compel the Federal Reserve to act earlier than expected to pull back on its ultra-low interest rate policies and potentially derail the economic recovery.

Indian hedge funds outperformed global peers amid COVID-19 pandemic

July 2021 | Eurekahedge


Indian hedge funds outperformed their global peers by a large margin in 2020, supported by the strong performance of the Indian equity market over the year. Despite the Indian economy’s 7.7% contraction in 2020 as a result of the devastating impact of the coronavirus pandemic, the Eurekahedge India Hedge Fund Index generated 19.88% return over 2020, dwarfing the 12.66% return posted by the Eurekahedge Hedge Fund Index over the same period, which also happened to be the best annual performance of the global hedge fund industry since 2009. However, most of those gains were generated through exposure toward the fast-growing equity market of the country, raising the question of whether some of these hedge fund managers actually generate enough alpha for their investors to justify their management and performance fees.

Key Trends in Asian Hedge Funds (July 2021)

July 2021 | Eurekahedge


The Eurekahedge Asian Hedge Fund Index was up 6.63% year-to-date as of May 2021, supported by the strong performance of the underlying equity market as represented by the MSCI Asia Pacific IMI, which gained 7.10% over the same period. Driven by the encouraging progress on vaccine roll-out in some areas in Asia, accommodative government policies and normalisation of economic activity, the equity market in the region continued to strengthen over the year. Hang Seng gained 7.05% over the first five months of 2021, while TOPIX posted 6.56% over the same period. Over in India, despite the recent surge of new COVID-19 cases which overwhelmed their healthcare sector, the economic growth outlook in the region remained strong which contributed to the strong performance of the equity market in the region. NIFTY 50 was up 6.50% in May, pushing its 2021 year-to-date return to 11.45%.

Asian Hedge Funds Infographic July 2021

July 2021 | Eurekahedge


Eurekahedge’s Asian hedge funds infographic sums up the industry as at July 2021. Find out more about Asian hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.