September 2022 | With Intelligence
The Eurekahedge Hedge Fund Index gained 0.04% in August, a second consecutive month of positive returns following a 1.5% gain in July, even as the broader markets continued to plummet, as reflected in the 4.2% decline of the S&P 500. Hopes for a dovish pivot in monetary policy in early 2023 were dashed after Federal Reserve chair Jerome Powell reiterated the need to maintain tight monetary policy and avoid loosening policy too early as inflation remained stubbornly high at 8.3% in August.
August 2022 | With Intelligence
The Eurekahedge Hedge Fund Index gained 1.3% in July, recording its highest monthly return since April 2021 after three consecutive months of decline, totaling 4.1% in Q2. The recovery was bolstered by the revival of the global equity market, reflected in the 9.1% rebound of the S&P 500. The Federal Reserve raised interest rates by another 75bps in July to combat persistent high inflation, which accelerated to 9.1% in June 2022, the highest since November 1981. However, a slower pace of rises is likely in the mid-term as US GDP contracted 0.9% in Q2, following a 1.6% contraction in Q1, putting the country into a recession.
May 2022 | Eurekahedge
The Eurekahedge European Hedge Fund Index was down -4.04% as of March 2022 year-to-date, outperforming the Euro Stoxx 50 which declined -9.21% over the same period. European equity markets suffered sharp declines over the first three months of 2022 as the escalating Russia-Ukraine conflict elicited severe economic sanctions on Russia from the US and their allies in a bid to cripple the Russian economy and war effort.
May 2022 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at March 2022. Find out more about European 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.
April 2022 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 2.00% year-to-date as of February 2022, outperforming the underlying global equity market as represented by the S&P 500 which was down 8.23% over the same period. 2020 was a very challenging year for global hedge funds as economic and market conditions were particularly dire.
April 2022 | Eurekahedge
Eurekahedge’s Global hedge funds infographic sums up the industry as at April 2022. Find out more about Global 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.
March 2022 | Eurekahedge
Trade finance hedge funds have gained traction over the recent years, driven by investor demand for alternative asset classes with low volatility and consistent return, as well as low correlation against the broader financial market. The sector began its rapid growth following the global financial crisis in 2008, when banks started reducing their trade finance exposure to meet Basel III capital requirements.
March 2022 | Eurekahedge
The Eurekahedge Asian Hedge Fund Index was down -3.02% year-to-date as of January 2022, outperforming the underlying equity market as represented by the MSCI AC Asia Pacific IMI, which retreated -4.16% over the same period. In 2020, the Eurekahedge Asian Hedge Fund Index suffered significant losses in the first quarter of the year as news of the rapidly spreading coronavirus hammered equity markets globally, resulting in the index declining by -8.72% in the first quarter of the year.
March 2022 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at March 2022. 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.
February 2022 | Eurekahedge
In the aftermath of the COVID-19 crisis, central banks and government authorities injected massive amounts of economic stimulus to support their economies from the market meltdown which led to a rapid increase in money supply, pushing up consumer prices. In the same vein, the ongoing global economic recovery and winter season in Europe has led to a surge in global demand and pushed energy prices back to pre-pandemic levels, exacerbating the already high consumer prices.
February 2022 | Eurekahedge
The Eurekahedge Latin American Hedge Fund Index retreated -2.95% in 2021, outperforming the MSCI EM Latin America Index which declined -7.58% over the same period. GDP in the Latin American region declined by 6.8% in 2020, driven by the economic collapse caused by the onset of the COVID-19 pandemic.
February 2022 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at February 2022. Find out more about Latin American 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.
January 2022 | Eurekahedge
Global hedge funds recorded higher returns in recent months as they benefitted from the strong recovery of risk assets, particularly equities. Global hedge funds gained 9.27%, 13.20%, and 9.37% annually from 2019 to 2021 respectively, marking their best three year performance since 2007.
January 2022 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at January 2022. Find out more about North American 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.
January 2022 | Eurekahedge
The Eurekahedge North American Hedge Fund Index was up 12.47% year-to-date as of November 2021, driven by the strong performance of the underlying equity market as represented by the MSCI North America IMI, which gained 19.87% over the same period
December 2021 | Eurekahedge
Eurekahedge’s long-only absolute return funds infographic sums up the industry as at December 2021. Find out more about long-only absolute return 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.
November 2021 | Eurekahedge
CTA/managed futures hedge funds gained 5.89% over the first three quarters of 2021, thanks to the sharp increase in commodity prices, particularly in the energy sector over the recent period. In early 2020, energy prices reached uncharted territory as the COVID-19 outbreak resulted in a global economic shutdown, which completely dampened the demand for oil. As a result, the value of crude oil dropped to zero, and its contract value in the futures market fell to negative territory, which was unpr
November 2021 | Eurekahedge
Eurekahedge’s Global hedge funds infographic sums up the industry as at November 2021. Find out more about Global 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.
November 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 8.15% year-to-date as of September 2021, trailing the underlying global equity market as represented by the MSCI ACWI IMI, which was up 11.99% over the same period. 2020 was a very challenging year for global hedge funds as economic and market conditions were particularly dire. Global equities took a huge beating, particularly in March 2020 when the World Health Organisation declared COVID-19 a global pandemic.
October 2021 | Eurekahedge
The Eurekahedge Cryptocurrency Hedge Fund Index was up 238.40% over the first eight months of 2021, outperforming Bitcoin which returned 163.35% over the same period. In 2020, cryptocurrencies were undoubtedly the best-performing asset class in the market, with Bitcoin posting a 300.17% return during the year. Bitcoin unexpectedly benefitted from the ongoing COVID-19 crisis as investors perceived the coin as an alternative safe-haven asset during market uncertainties. As a result, the market value of Bitcoin increased by more than 600% from its March 2020 low to the end of August 2021.
October 2021 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at October 2021. Find out more about European 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.
October 2021 | Eurekahedge
The Eurekahedge European Hedge Fund Index was up 7.83% as of August 2021 year-to-date, supported by the robust performance of the MSCI AC Europe IMI (Local) which gained 17.12% over the same period. In the first eight months of 2021, European equity markets posted robust gains despite the continued spread of COVID-19 in the region as many large Eurozone countries have achieved high levels of vaccine coverage which helped to alleviate the need to implement costly lockdowns and enabled their economies to remain largely open.
September 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.76% in August, trailing behind the global equity market as represented by the MSCI ACWI (Local) which gained 2.45% over the same period.
Global markets were buoyed by a rise in investor risk appetite due to the continuation of highly accommodative monetary policies and the dovish comments made by Federal Reserve chairman Jerome Powell during the Jackson Hole symposium.
September 2021 | Eurekahedge
The Eurekahedge Latin American Hedge Fund Index was up 2.10% as of July 2021 year-to-date, narrowly underperforming the MSCI EM Latin America Index, which gained 2.60% over the same period. The slow vaccination rollout in the Latin American region has necessitated the imposition of lockdowns in a bid to slow down the spread of the highly infectious COVID-19 virus, negatively impacting the economic recovery in the region. Most Latin American countries have struggled to secure sufficient vaccine doses due to logistical challenges that has impeded the vaccine rollout. The emergence of the Lambda variant in the region has led to worries that the pandemic could worsen, especially since studies have revealed that the Lambda variant confers significant resistance to neutralising antibodies induced by the inactivated CoronaVac vaccine, one of the major vaccines used in Latin America. As such, GDP levels in the region is expected to return to pre-pandemic levels only by the end of 2022, transla
September 2021 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at September 2021. Find out more about Latin American 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.
September 2021 | Eurekahedge
Emerging market hedge funds were up 4.32% over the first seven months of 2021, trailing behind their developed market counterparts in North America, Japan and Europe which returned 10.99%, 6.71% and 6.68% respectively. The economic recovery in the emerging markets has lagged their developed market counterparts due to delays in vaccine rollouts that had necessitated the imposition of harsh lockdown measures to prevent hospital systems from getting overwhelmed.
September 2021 | Eurekahedge
The Eurekahedge Greater China Hedge Fund Index was down 4.20% in July, reducing its year-to-date return to 1.66%. In comparison, the underlying equity market in the region as represented by the MSCI China Golden Dragon IMI recorded a loss of 9.60% over the same period. A month after Didi Global Inc. celebrated its debut in the NYSE which makes them the biggest IPO of Chinese companies listed in the US, Beijing abruptly announced a stricter policy for domestic companies listing offshore, particularly in the US. The move by the government of China raised concerns among investors who fear a wave of potential delisting of Chinese companies in the US. As a result, the region's equity market experienced a massive sell-off during the month, with the Hang Seng down by 9.94%, while China’s Shanghai Composite fell 5.40% throughout the month. Looking back at 2020, Greater China fund managers benefitted from the strong performance of the equity market in the region, supported by the rapid recovery
August 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.27% in July, trailing behind the global equity market as represented by the MSCI ACWI (Local) which gained 0.40% over the same period. The steady progress of the COVID-19 vaccine rollout in several major developed markets enabled the relaxation of mobility restrictions which provided support to the global economic recovery. However, investor sentiment was dampened by the spread of the highly infectious Delta variant of COVID-19, leading to concerns that the economic momentum would not be sustainable.
August 2021 | Eurekahedge
Investors are increasingly beginning to incorporate ethical considerations into their investment decisions, a development which has given rise to the ESG framework over the years. Despite the implementation challenges which arise when screening investments against acceptable environmental, social and corporate governance themes, the trend towards a more conscientious approach to investment is here to stay, especially from the perspective of large institutional investors. Fund managers, for both actively and passively managed investment vehicles are balancing their quest for superior returns with the need to meet investor demand for responsible investing. Further, an understanding that such an approach to investment can translate into ‘ESG-induced alpha’ for managers is further helping the cause of ethically guided investing. This piece looks at the performance of funds, both long-only absolute return vehicles and hedge funds, with an active ESG investment framework and how they have pe
August 2021 | Eurekahedge
The Eurekahedge North American Hedge Fund Index was up 11.34% year-to-date as of June 2021, driven by the strong performance of the underlying equity market as represented by the MSCI North America Index AC, which gained 14.68% 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.
August 2021 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at August 2021. Find out more about North American 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.
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.
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.
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%.
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.
June 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.87% in May, supported by the robust performance of the global equity market as represented by the MSCI ACWI (Local) which gained 0.83% over the same month. Year-on-year US inflation rose to 5.0% for May from 4.2% in April, the highest level in over a decade. The heightened inflation figures worried investors who were concerned that this could force the Federal Reserve to tighten monetary policy earlier than expected to achieve its 2% average inflation goal.
June 2021 | Eurekahedge
The return of market volatility on the back of the ongoing COVID-19 pandemic around the globe and the retail trading frenzy of meme stocks like GameStop and AMC Entertainment has pushed two particular niche hedge fund strategies back into the spotlight; the CBOE Eurekahedge Long Volatility Hedge Fund Index and the CBOE Eurekahedge Tail Risk Hedge Fund Index returned 25.41% and 34.84% respectively in 2020. The two strategies which provide crisis alpha and protection for institutional portfolios have long since generated debates among asset owners and academics alike.
June 2021 | Eurekahedge
Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, as UCITS is embodied by strong regulation, resulting in a high level of investor protection with certain restrictions such as liquidity of the underlying assets and leverage caps to provide added transparency to investors.
June 2021 | Eurekahedge
Eurekahedge’s UCITS hedge funds infographic sums up the industry as at June 2021. Find out more about UCITS 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.
May 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 2.16% in April, supported by the robust performance of the global equity market as represented by the MSCI ACWI (Local) which gained 3.53% over the same month. Better than expected macroeconomic data and strong corporate earnings boosted the performance of the equity market as the S&P500 returned 5.24% in April. The Federal Reserve reassured the market that monetary policy will remain accommodative to support economic growth amid lingering fears that the emergence of new variants of COVID-19 could lead to recurring waves of infections and derail the recovery of the global economy.
May 2021 | Eurekahedge
The global hedge fund industry has witnessed a trend of declining management and performance fees over the past decade, calling into question the traditional “2 and 20” fee structure the industry was famous for. Mediocre returns over recent years – as opposed to the double-digit annual returns investors had come to expect from hedge funds pre-2008 along with increasing competition within the industry and tighter regulation over alternative investment vehicles are some key factors which have contributed to this trend. Investor experience during the 2008 global financial crisis had resulted in more disintermediation within the industry, with institutional investors engaging hedge fund managers directly. Faced with more proactive and demanding investors, many hedge fund managers ended up lowering their fees, or adopting stricter hurdle rates and shorter lockup periods. Nevertheless, as we will discuss in this piece, a sizeable part of the hedge fund industry has continued to maintain leve
May 2021 | Eurekahedge
The Eurekahedge European Hedge Fund Index was up 3.83% as of March 2021 year-to-date, supported by the robust performance of the underlying equity market in the region as reflected by the 7.02% return of the MSCI AC Europe IMI over the same period. The speedy COVID-19 vaccine rollout on top of the accommodative monetary policy exhibited by the European Central Bank to support the economies from the ongoing crisis acted as a tailwind to the equity market in the region. The EURO STOXX 50 which represents the leading blue-chip companies in the Euro Zone recorded a double-digit return of 11.88% over the first three months. In the same vein, DAX and CAC 40 were up 9.40% and 9.29% over the same period thanks to the gradual economic recovery in the region as seen on their strong macroeconomic data.
May 2021 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at May 2021. Find out more about fund of 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.
April 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.95% in March 2021, supported by the robust performance of the global equity market as represented by the MSCI ACWI (Local) which gained 3.24% over the same period. The Federal Reserve reaffirmed their commitment to keep monetary policy accommodative for at least another two years and allow inflation to rise above 2% before considering any rate hikes. This led to increased inflation expectations among investors and continued selling pressure on long-dated US treasures. The yield of the 10-year treasury note rose by 34bp to end the month at 1.744%, more than doubling the 0.842% yield at the end of November 2020. The equity market in the United States continued to record strong returns in March 2021, with the DJIA gaining 6.62% and the S&P 500 gaining 4.24%. Equities were supported by the US$1.9 trillion economic stimulus package rolled out by the Biden administration as well as the continued speedy rollout of vaccinations.
April 2021 | Eurekahedge
Since the aftermath of the Global Financial Crisis in 2008, the Federal Reserve has kept interest rates at zero to keep borrowing costs low and spur economic growth. This policy had persisted until December 2015 when the Federal Reserve Chair Janet Yellen started the Fed back on a rate-hiking path in a bid to bring interest rates back to normal levels and reduce the size of the Fed’s balance sheet. The target funds rate was increased by 25 basis points from 0.25 to 0.5 percent, marking the first increase in interest rates since the key rate was increased to 5.25 percent on June 29, 2006.
April 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 3.83% year-to-date as of February 2021, outperforming the underlying global equity market as represented by the MSCI ACWI IMI, which was up 2.73% over the same period. 2020 was a very challenging year for global hedge funds as economic and market conditions were particularly dire. Global equities took a huge beating, particularly in March 2020 when the World Health Organisation declared COVID-19 a global pandemic. The MSCI ACWI IMI declined a staggering 13.99% in March 2020, negatively impacting the performance of global hedge funds as they lost 6.35% during the month.
April 2021 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at April 2021. Find out more about fund of 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.
March 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 2.99% in February 2021, outperforming the global equity market as represented by the MSCI ACWI which gained 2.72% over the same period. The global equity markets rallied strongly in the first two weeks of February, supported by strong corporate earnings and the increased likelihood that Biden’s new US$1.9 trillion economic stimulus package will be approved by Congress even in the absence of Republican support. In addition, the continued speedy rollout of vaccines across the United States led to optimism that a greater relaxation of virus control measures will be possible and allow the economy to return to normalcy sooner. These factors led to a sharp increase in inflation expectations and a significant rise in the yield of global longer tenor bonds.
March 2021 | Eurekahedge
The stellar performance of technology stocks in 2020 amid the COVID-19 pandemic has led to outsized returns for investors who have placed bets in technology stocks. The tech-heavy NASDAQ Composite rose 43.64% in 2020, posting the highest return recorded by the index since 2009 and outperforming the broader S&P 500 which rose 16.26%. Technology stocks benefited from the COVID-19 induced lockdowns as people brought forward their technology purchases to enable themselves to work from home productively and stay connected to their friends and colleagues. In addition, technology stocks were also supported by the Federal Reserve’s emergency move in March 2020 to cut benchmark interest rates to zero and restart quantitative easing. As technology stocks are generally regarded as long-duration, the fall in interest rates increased the present value of their future earnings by a larger extent and supported their share prices.
February 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.54% in January 2021, outperforming the global equity market as represented by the MSCI ACWI which gained 0.11% over the same period. Global equities went on a roller coaster ride this month as their gains in the first three weeks were erased in the final week of the month due to market turbulence caused by the retail trading mania. In the US, Democratic Party candidates Jon Ossoff and Raphael Warnock defeated their Republican opponents in two runoff elections in Georgia, granting the Democrats control of the House, Senate and White House for the first time since 2011. This led to increased optimism that the Democrats would be able to push President Biden’s proposal for a US$1.9 trillion coronavirus relief package through the Senate without Republican support. However, market risk sentiment rapidly deteriorated as retail investors and notable hedge funds clashed over GameStop stock, negatively affecting investors’ confidence in the stability o
February 2021 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at February 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.
January 2021 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 3.30% in December 2020, supported by the strong performance of the global equity market as represented by MSCI ACWI which gained 4.04% during the month. In 2020, global hedge funds ended the year in double-digit performance with 11.68% return, recording their best annual performance in over a decade, despite the ongoing pandemic. In the earlier months of 2020, the COVID-19 outbreak forced non-essential businesses to temporarily cease their operations. This in turn caused a shutdown of broader economic activity resulting in the sharp increase in unemployment rate. Unemployment rate reached 14.8% in April 2020 in the US – a level that has not been seen since the Great Depression. However, risk assets made a strong comeback since end-March, supported by the massive economic stimulus, low-interest rates, reopening of the major economies, and positive development of COVID-19 vaccines which boosted the performance of the global equity market.
January 2021 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at January 2021. Find out more about North American 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.
December 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 4.50% in November 2020 on the back of the robust performance of the global equity market as represented by the MSCI ACWI which gained 11.63% over the same period. Global equities reacted positively to the relatively smooth conclusion of the US presidential election and better-than-expected results of the effectiveness of the COVID-19 vaccines, eclipsing worries about the near-term economic outlook. In Europe, despite the reimposition of restrictive lockdown measures across many countries in the region to curb the increasing number of new COVID-19 infections, European stock indices rallied strongly as news of the better-than-expected efficacy of several vaccine candidates led to optimism that the worst of the pandemic could soon be over.
December 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 4.50% in November 2020, supported by the strong performance of the global equity market as reflected by the 11.63% return of the MSCI ACWI during the month. Global equities ended the month in strong positive territory due to the relatively smooth conclusion of the US presidential election and the announcement of three vaccines that are effective against COVID-19, eclipsing worries about the near-term economic outlook. Despite the reimposition of restrictive lockdown measures across many European countries to curb the increasing number of new COVID-19 infections, European stock indices rallied strongly as news of the better than expected efficacy of several vaccine candidates led to optimism that the worst of the pandemic could soon be over.
December 2020 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2020. Find out more about global 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.
November 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.05% in October 2020, outperforming the global equity market as represented by the MSCI ACWI (Local), which lost 2.29% over the same period. The reimposition of national lockdowns across Europe, uncertainty in the outcome of the US presidential election, and the breakdown in US fiscal stimulus talks, resulted in the negative performance of global equities during the month. The acceleration of daily COVID-19 cases in Europe forced the authorities to reimpose restrictive measures to curb the increasing number of new infections, which acted as a headwind to the performance of the equity market in the region.
November 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.05% in October 2020, outperforming the global equity market as represented by the MSCI ACWI (Local), which slipped 2.29% over the same period. Global equities ended the month in negative territory due to the reimposition of national lockdowns across Europe, uncertainty in the outcome of the US presidential election, and the breakdown in US fiscal stimulus talks.
November 2020 | Eurekahedge
Emerging market hedge funds were up 5.11% over the first three quarters of 2020, outperforming their developed market counterparts in North America, Europe and Japan which generated 3.99%, -1.51% and -3.37% respectively. In the first quarter of 2020, the Eurekahedge Emerging Markets Hedge Fund Index tumbled 10.66% as the coronavirus pandemic broke out in in Wuhan, China, forcing Chinese authorities to put the city on lockdown on January 23. As the pandemic worsened, the lockdown was extended to the rest of Hubei province and the World Health Organisation on January 30 declared the outbreak a global public-health emergency. On March 11 2020, the World Health Organisation officially declared the outbreak a pandemic as coronavirus cases began to increase sharply in many parts of the world and forced many countries to implement lockdown measures in a bid to halt the rapidly escalating number of cases and prevent healthcare systems from being overwhelmed.
November 2020 | Eurekahedge
Eurekahedge’s emerging market hedge funds infographic sums up the industry as at November 2020. Find out more about global 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.
October 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.76% 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.
October 2020 | Eurekahedge
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 its five-month rally due to renewed concerns over new government restrictions to curb the increasing COVID-19 cases in Europe and the delay on new fiscal stimulus measures in the US Congress. In the US ahead of the upcoming presidential election, failure to reach a consensus over a new round of economic stimulus contributed to the weak performance of the equity market in the region. The tech-heavy NASDAQ and S&P 500 were down 5.16% and 4.10% during the month, respectively.
October 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 4.00% year-to-date as of August 2020, outperforming the underlying global equity market as represented by the MSCI ACWI IMI, which was down 0.89% over the same period. In the earlier months of 2020, the global equity market sharply declined due to the impact of COVID-19 pandemic, which stalled economic activity. The coronavirus started to spread outside Beijing in February, which heightened concerns among investors that resulted in back-to-back sell-off in the first quarter, particularly in March.
October 2020 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at October 2020. Find out more about global 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.
September 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.85% in August, bringing its year-to-date return to 3.79% and its five-month trailing return to 12.85% since end-March. Hedge fund managers benefitted from the robust performance of the global equity market as represented by the MSCI ACWI (Local) which gained 5.54% over the month. Risk assets reacted positively to the encouraging development of the COVID-19 vaccine and improving macroeconomic data. In the US, the deceleration of the spread of COVID-19 and the Fed's announcement on adopting a new inflation framework that could keep its policy rate lower for a longer period boosted the region's equity market during the month.
September 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.85% in August, bringing its year-to-date return to 3.79% and its five-month trailing return to 12.85% since end-March. The robust performance of the global equity markets on the back of the encouraging development of the COVID-19 vaccine and improving macroeconomic data supported hedge fund managers' performance. In the US, the declining daily COVID-19 cases on top of the Fed's new inflation targeting framework boosted the region's equity market. The tech-heavy NASDAQ recorded the strongest return of 9.59%, while the S&P 500 was up 7.20% in August. The Fed shifted its approach to inflation to 'average inflation target' aiming to achieve an average inflation rate of two percent over time, which were expected to result in keeping the interest rates lower for an extended period.
September 2020 | Eurekahedge
The Eurekahedge Latin American Hedge Fund Index was up 0.21% as of July 2020 year-to-date, broadly outperforming the underlying equity market in the region as represented by the MSCI EM Latin America Index, which was down 13.59% over the same period. In 2019, Latin American fund managers gained 15.22%, outperforming their regional peers as the strong run of risk assets in the region supported the fund managers' performance throughout the year. However, risk aversion resurfaced in the first quarter of 2020 due to concern surrounding the spread of the coronavirus outside China.
September 2020 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at September 2020. Find out more about Latin American 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.
August 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 2.52% in July, supported by the robust performance of the underlying global equity markets as represented by the MSCI ACWI IMI (Local) which gained 3.67% over the month. The highlight of the month was the continued support for markets by global central banks, which once again pulled no surprises. While the debate around MMT (Modern Monetary Theory) continues to pick pace, in the presence of high unemployment and the absence of inflation, it appears that MMT proponents will have a walk over of sorts. This should continue to bode well for financial markets which are so far defying the natural laws of gravity that has otherwise stalled real economic activity globally. In the US, despite the fear of the increasing number of COVID-19 cases, the equity market in the region exhibited a strong run driven by the upbeat Q2 earnings of tech-companies, particularly the FAANG stocks, which beat market expectation.
August 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 2.52% in July, bringing its year-to-date return to 1.65%, supported by the robust performance of the underlying global equity market as represented by the MSCI ACWI IMI (Local) which gained 3.67% over the same month. In the US, despite the fear of the increasing number of COVID-19 cases, the equity market in the region exhibited a strong run, with the tech-heavy NASDAQ up 8.82%, pushing its year-to-date return to 19.76%, while the S&P 500 returned 6.53% throughout the month, bringing its 2020 performance back into positive territory. The tech companies, particularly the FAANG group, benefitted from the pandemic which resulted in strong Q2 earnings. On the other hand, European equities underperformed owing to the escalation of the US-China trade tension and weak corporate earnings.
August 2020 | Eurekahedge
The Eurekahedge Asian Hedge Fund Index was up 0.89% year-to-date as of June 2020, outperforming the underlying equity market as represented by the MSCI AC Asia Pacific IMI, which lost 7.18% over the same period. In 2019, Asian hedge funds registered 9.95% return, supported by the strong performance of the underlying equity market on the back of positive geopolitical development and accommodative central bank policies. Looking into 2020, the mandate suffered significant losses in the first quarter of the year owing to the COVID-19 outbreak, which originated in the province of Wuhan, China. The coronavirus was later declared by the World Health Organization (WHO) as a pandemic. The spread of the virus forced government authorities to impose lockdown that resulted in a temporary closure of non-essential businesses. The partial shutdown of economic activity pushed the unemployment rate higher, causing a global-wide massive sell-off in risk assets in February and March. The CSI 300 and Shan
August 2020 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at August 2020. 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.
August 2020 | Eurekahedge
Tony Bremness is a Partner, Managing Director, and Chief Investment Officer at Laureola Advisors Inc. Tony has extensive experience in investment analysis, portfolio construction, and risk control. Tony is a frequent speaker at Alternative Investment Conferences, with a focus on Life Settlements. He graduated with an MBA (1985 McGill University, Canada) and has been awarded the CFA accreditation (1991).
Mr. Bremness has over 35 years of asset management experience, with portfolios ranging in size from $100,000 to over $10 billion. He has designed, structured, and launched several investment Funds, and has consulted to some of the world’s largest institutional investors on Asset Allocation and manager selection.
Laureola Advisors was founded in 2012 and launched its first Fund in April 2013 to allow investors to access the non-correlated and stable returns offered by this unique asset class. Laureola Funds have won several awards over the 7+ year history. Being a boutique Manage
July 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.38% in June, supported by the strong performance of the global equity market as represented by the MSCI ACWI IMI (Local), which returned 2.70% over the same month. The resumption of the economic activity of most countries, particularly in Europe and the US combined with an upbeat macroeconomic data, boosted market optimism towards a faster-than-expected recovery of the global economy from the crisis, which provided support to the performance of risk assets. In the US, strong labour data was recorded, particularly the nonfarm payroll that beat the market expectation by a substantial margin, acted as a tailwind to the performance in the region's equity market.
July 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.38% in June, driven by the strong performance of the global equity market as represented by the MSCI ACWI IMI (Local), which gained 2.70% over the same month. Global equities benefitted from the resumption of economic activity of most countries combined with an upbeat macroeconomic data boosting investors' optimism towards a faster-than-expected recovery of the global economy from the crisis. The US equity benchmark registered strong performance, as the labour data, particularly the nonfarm payroll, beat the market consensus by a substantial margin. The tech-heavy NASDAQ was up 4.05% in June, bringing its year-to-date return to 10.05%, while the S&P500 was up 0.87% during the month. In the same vein, European equities rallied, supported by the proposed stimulus package totalling 750 billion euros by the EU leaders to soothe the economic pain brought by the coronavirus. The DAX and CAC 40 were up 6.25% and 5.12% over the month, respectively.
July 2020 | Eurekahedge
Greater China equity hedge funds ended 2019 up 15.49%, supported by the strong performance of the Chinese equity markets throughout the year on the back of improving geopolitical situations and accommodative central bank policies. The Eurekahedge Greater China Long Short Equities Hedge Fund Index which tracks 55 active Greater China-focused hedge funds utilising equity strategies slumped 14.74% in 2018 as mounting pressure from the escalating trade tension between China and the US weighed on the performance of Chinese equity markets. Volatile trading condition and various political concerns took their toll on Greater China equity hedge funds as they ended nine of the months of 2018 in the red. On top of the tariff spat between the Chinese government and the Trump administration, the continual protests in Hong Kong which resulted from the introduction of an extradition bill in early 2019 has also acted as a major headwind for the city state’s economic outlook throughout the year.
July 2020 | Eurekahedge
The Eurekahedge Long-Only Absolute Return Fund Index was down 11.09% as of May 2020 year-to-date, trailing behind with their hedge funds and funds of funds counterparts who loss 2.62% and 3.05% over the same period respectively. In 2019, absolute return funds recorded a 16.31% return as they benefitted from the robust performance of the global equity market on the back of positive geopolitical development and accommodative central bank policies.
July 2020 | Eurekahedge
Eurekahedge’s long-only absolute return funds infographic sums up the industry as at July 2020. Find out more about long-only absolute return 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.
July 2020 | Eurekahedge
Michael Günther has been a member of the Executive Board of TRYCON G.C.M. AG since 2002 and since 2013 a portfolio manager at Tungsten Capital, an asset management company based in Frankfurt am Main. Since the year 2000, he has dealt with systematic trading strategies and the application of machine learning and artificial intelligence to the financial markets.
In the integration of these technologies in investment decisions, he is one of the pioneers in Germany. Michael Guenther, together with Pablo Hess, is responsible for the development of the proprietary portfolio software QuantMatrix, which applies artificial intelligence and machine learning for the trading strategy of the Tungsten TRYCON fund. The multi-asset long / short fund Tungsten TRYCON AI Global Markets, managed by the two, provides investors with access to new data analysis technologies and artificial intelligence and has received several awards.
July 2020 | Eurekahedge
Established in 2008, Carlisle is a leading, highly diversified global investment management firm. Our state-of-the-art facilities and statistical modelling systems incorporate knowledge gained from 60+ years of combined investment experience within the alternative asset sector. Supervised by the Luxembourg regulator and being subject to controls of reputable audit firms at both management company and fund level, we operate independently, which allows us to focus solely on investors call for transparency and performance, within a regulated framework providing accurate management of the risks involved while maximizing investment returns.
July 2020 | Eurekahedge
Jesse is director, chief investment officer and portfolio manager of Urania Capital Management Ltd. Before co--founding Urania Capital Ltd, Jesse has been managing money for friends and families for many years through “managed accounts” consistently outperforming S&P 500 index and generating solid risk-adjusted returns and high alpha. Jesse developed and refined his unique stock market investment philosophy and methodologies through and combining (1) 30 years of stock market investment study and practice, (2) 30 years of experience in starting and managing businesses in various functional capacities, (3) deep understanding of corporate finances, accounting and business
Numbers as chief financial officer of private and public companies, and (4) extensive knowledge and application of Mathematical and statistical models. Jesse holds an MBA from Columbia University and a MS in Engineering from Iowa State University.
July 2020 | Eurekahedge
Quant Infinity is a data science company that develops algorithmic trading solutions based on Artificial Intelligence (AI) and Machine Learning (ML), specifically for investment funds and asset management companies
June 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 2.03% in May, supported by strong equity market performance as represented by the MSCI ACWI (Local), which gained 4.32%. Global equities ended the month on a positive note driven by market optimism on the reopening of major economies and expansionary central bank policies. The tech-heavy NASDAQ recorded a new all-time high as it gained 6.75% in May, while the S&P 500 was up 4.53% over the same period. In the same vein, European equities also climbed as the French and German governments unveiled a half-trillion recovery fund to help EU countries hit by the pandemic.
June 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 2.03%1 in May, supported by the robust performance of the global equity market as represented by the MSCI ACWI (Local), which gained 4.32% over the same month. Global equities continued its rally driven by the reopening of major economies and accommodative central bank policies. For the week ending May 15, the market saw a decline in risk assets owing to concerns regarding the second pandemic wave and fresh tension between the US and China, pushing the S&P 500 down 2.26%.
June 2020 | Eurekahedge
Trade finance hedge funds have gained traction over recent years, driven by investor demand for alternative asset classes with low volatility and consistent return, as well as low correlation against the broader financial market. The sector began its rapid growth following the global financial crisis in 2008, when banks started reducing their trade finance exposure to meet Basel III capital requirements. To address the lack of a standard benchmark for this niche hedge fund strategy, Eurekahedge launched the industry’s first trade finance hedge fund index in 2018, providing institutional investors with a benchmark index representing the performance of trade finance hedge fund managers.
June 2020 | Eurekahedge
Multi-manager funds were down 5.05% over the first four months of 2020, underperforming their single-manager counterparts who lost 4.59% over the same period. In 2019, the fund of funds industry registered 8.59% return - recording their best annual performance since 2009.
June 2020 | Eurekahedge
Eurekahedge’s funds of hedge funds infographic sums up the industry as at June 2020. Find out more about funds of 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.
June 2020 | Eurekahedge
Crabel Capital Management is a global alternative investment firm specializing in systematic, automated trading of global futures and foreign exchange. Our Los Angeles based firm was founded by short-term trading pioneer Toby Crabel and has delivered over 25 years of uncorrelated returns for its institutional clients. The firm has developed a diverse array of trading strategies designed to systematically capture market anomalies implemented through a technologically advanced, low latency infrastructure. Global co-location facilities and proprietary execution algorithms allow the firm to efficiently trade in approximately 200 futures and foreign exchange markets.
May 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 4.03% in April, supported by the strong performance of the global equity market which pushed the MSCI ACWI IMI (Local) up 10.47% over the month. Global equities enjoyed a strong rally throughout the month on the back of optimism over the development of potential COVID-19 vaccines and the reopening of the economy.
May 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 4.03% in April – registering its best month since May 2009, supported by the robust performance of the underlying global equity market as represented by the MSCI ACWI IMI (Local) which gained 10.47% over the month. Global equities recouped some of the losses they suffered in March on the back of market optimism over the development of potential vaccineThe Eurekahedge Hedge Fund Index was up 4.03% in April – registering its best month sis and the reopening of the economy.
May 2020 | Eurekahedge
Exchange-traded funds (ETFs) have become an increasingly crucial tool for both institutional and retail investors to gain exposure to certain markets or hedge risks at a low cost in recent years. The explosive growth of the assets managed through ETFs has been largely driven by the increase in popularity of index funds, ETFs designed to track the performance of an index. An index fund could be used by retail investors to passively invest in equity markets, or by fund managers to easily adjust their portfolio exposure towards certain markets.
May 2020 | Eurekahedge
The Eurekahedge North American Hedge Fund Index was down 9.61% year-to-date as of March 2020, outperforming the underlying equity market as represented by the MSCI North America IMI, which lost 21.40% over the same period. The severity of the COVID-19 outbreak outside Mainland China has forced government authorities to implement lockdown and social distancing measures, resulting in a massive sell-off in the global equity market.
May 2020 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at May 2020. Find out more about North American 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.
May 2020 | Eurekahedge
Asim founded AG Capital in 2014. He has a background in economics, strategy, and investment consulting, as well as futures trading and risk management. Most recently, he worked as an investment consultant in Cambridge Associates, LLC’s Boston office, where he advised foundations, universities, private clients, and insurance groups in the U.S. ranging in size from $100 million to $20 billion. Prior to joining Cambridge Associates, Asim was a Principal at Partners Capital Investment Group, LLC, an international investment advisory firm. Before that, he was a strategy consultant at Bain & Company, Inc. He began his career as an economics and business consulting analyst at Charles River Associates, Inc
April 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 4.77% in March, outperforming the underlying equity market as represented by the MSCI ACWI IMI (Local), which lost 13.99% over the month. Global equities ended the month with double-digit losses, despite the partial recovery toward the end of the month, driven by fiscal and monetary stimulus packages. The situation surrounding the COVID-19 outbreak continued to worsen around the globe, with the United States overtaking China and Italy as the country with the highest number of confirmed cases. US authorities were forced to implement lockdown in most states adversely affected by the coronavirus outbreak, with New York being the hardest hit.
April 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 4.41% in March, outperforming the underlying equity market as represented by the MSCI ACWI IMI (Local), which lost 13.99% over the month. Global equities were under pressure from the market sell-offs throughout most of the month, before recouping some of their losses later on. The COVID-19 outbreak continued to worsen globally, with the United States overtaking China as the country with the highest number of confirmed cases. US authorities were forced to implement stringent social distancing measures in an attempt to flatten the outbreak curve, resulting in increasing unemployment rate and slowing economic growth as businesses deemed non-essential were forced to temporarily cease their operations.
April 2020 | Eurekahedge
Hedge fund managers ended the first quarter of 2020 down 6.42%, while delivering their strongest post-2008 monthly outperformance over the global equity market as represented by the MSCI ACWI IMI. The escalation of the COVID-19 outbreak, which has spread to more than a hundred countries around the globe over the past two months, has weighed on the performance of risk assets in February and March.
April 2020 | Eurekahedge
The Eurekahedge European Hedge Fund Index was down 2.48% as of February 2020 year-to-date, outperforming the MSCI AC Europe IMI, which lost 9.79% over the same period. In the fourth quarter of 2019, the European equity markets rose higher, supported by the positive geopolitical development surrounding the US-China trade negotiations as the two leading economies reached the phase-one deal, which was signed in January 2020. The DAX and CAC 40 gained 6.61% and 5.29% in Q4 2019, reaching new all-time highs. However, market risk sentiment shifted quickly in February 2020 as the extent of the COVID-19 outbreak outside China resulted in concerns over the global economic growth.
April 2020 | Eurekahedge
Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, as UCITS embodied by strong regulation results in a high level of investors’ protection with certain restrictions such as liquidity of the underlying assets and leverage caps to provide added transparency to investors.
April 2020 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at April 2020. Find out more about European 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.
April 2020 | Eurekahedge
Eurekahedge’s UCITS hedge funds infographic sums up the industry as at April 2020. Find out more about UCITS 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.
April 2020 | Eurekahedge
Christopher R. Cole, CFA, is the Founder & CIO of Artemis Capital Management LP. Mr. Cole’s core focus is systematic, quantitative, and behavioral-based trading of volatility and derivatives. His decision to form a fund came after achieving significant proprietary returns during the 2008 financial crash trading volatility futures and options (verified by an independent auditor).
March 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 1.73% in February, outperforming the underlying equity market as represented by MSCI ACWI (Local) which plummeted 7.84% over the same period. Global equities started the month on a positive note, driven by the market optimism towards the containment of the COVID-19 as the number of newly infected people in Mainland China decelerated and central banks announced stimulus packages.
March 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 1.73% in February, outperforming the underlying global equity market as represented by the MSCI ACWI (Local) which lost 7.84% over the month. Global equities rallied earlier into the month, supported by the improving situation in China over the COVID-19 outbreak and stimulus packages announced by central banks. The tech-heavy NASDAQ Composite recorded a new all-time high for the week ending February 14, as the encouraging macroeconomic data in the region also contributed to its performance during the period.
March 2020 | Eurekahedge
The return of market volatility on the back of the escalating COVID-19 outbreak situation around the globe has pushed two particular niche hedge fund strategies back into the spotlight: the CBOE Eurekahedge Long Volatility Hedge Fund Index and the CBOE Eurekahedge Tail Risk Hedge Fund Index returned 10.27% and 12.28% respectively in February 2020. The two strategies which provide crisis alpha and protection for institutional portfolios have long since generated debates among asset owners and academics alike.
March 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.08% year-to-date as of January 2020, outperforming the underlying global equity market as represented by the MSCI ACWI IMI, which was down 0.89% over the same period. In 2019, the positive development of the US-China trade negotiations and the Fed’s shift of stance on their policy rates were the primary drivers of the global equity market performance.
March 2020 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at March 2020. Find out more about global 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.
February 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index ended 2019 up 8.67%, recording its strongest annual performance since 2013 on the back of the de-escalation of the US-China trade war and accommodative central bank policies. Going into 2020, hedge fund managers returned 0.14% in January, outperforming the MSCI ACWI (Local) which slumped 0.90% over the month following the COVID-19 outbreak in China. Despite liquidity injection by the People’s Bank of China and the reduction of tariffs on US imports, investors remained concerned on the impact of the epidemic on the global economic outlook. Returns were mixed across regions in January, with Asia ex-Japan fund managers returning 0.93%, ahead of their peers focusing on North America, who ended the month down 0.11%. Long/short equities fund managers were down 0.35% in January as the weak equity market performance throughout the latter half of the month weighed on their returns.
February 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.14% in January, ahead of the underlying equity market as represented by the MSCI ACWI (Local) which lost 0.90% over the same period. Global equities rallied earlier into the month, supported by the easing tension in the Middle East and the signing of the US-China phase-one trade deal. The S&P 500 and the tech-heavy NASDAQ returned 2.29% and 1.97% respectively for the week ending January 17. However, market sentiment shifted rapidly towards the end of the month, following the coronavirus outbreak in China. Investors feared that the epidemic, which draws parallel to the SARS outbreak in 2003 might have an adverse impact on the global economic outlook.
February 2020 | Eurekahedge
The Eurekahedge ILS Advisers Index gained 0.92% in 2019, following two consecutive years of losses during which ILS fund managers with catastrophe risk exposure suffered from the damage caused by the Atlantic hurricane seasons. Despite being a period of calm insurance losses, 2019 saw ILS fund managers languishing under loss creep from upward adjustments in estimated losses of past events. Insurance-linked securities (ILS) hedge funds trade in instruments whose values depend on insurance loss events. The majority of these instruments are reinsurance policies that assume the risk taken by insurance companies, which in turn assume the risk taken by individuals or institutions.
February 2020 | Eurekahedge
The Islamic finance industry is a niche market predominantly serving the needs of the world’s Muslim population. Products marketed under the umbrella of Islamic finance comply with a different investment philosophy as opposed to traditional investment philosophy which the rest of the world are familiar with. Under a Shariah-compliant framework, transactions which are considered to be unethical under Islamic law are prohibited and instead, fund managers invest in products which are compliant with Islamic guidelines. Islamic financial products are accessible to all investors, some of whom choose to allocate into Islamic funds for purposes of portfolio diversification or their preference in investing in products which deemed as socially responsible. In recent years, Islamic finance has been catching on with traditional finance institutions as international banks have expanded into providing Islamic finance services.
February 2020 | Eurekahedge
Eurekahedge’s Islamic hedge funds infographic sums up the industry as at February 2020. Find out more about Islamic 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.
February 2020 | Eurekahedge
Dino has over 27 years of experience in global trade finance and debt markets both in the banking and investment management sectors. He has served as global head of trade finance related products for Standard Chartered Bank, Standard Bank, and Banco Santander where he managed trading and investment portfolios in the trade finance related sector and market leading origination and trading desks.
January 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index ended 2019 up 8.74%, recording its strongest annual performance since 2013. The global hedge fund industry has been supported by the global equity market rally on the back of the de-escalation of the US-China trade war and accommodative central bank policies. Positive geopolitical developments surrounding the trade war and Brexit have also sustained investors’ risk sentiment over the last quarter of the year. Returns were positive across regions, with Asia ex-Japan fund managers returning 2.58% in December, on the back of the region’s equity market rally. Fund managers focusing on Asia ex-Japan were up 12.03% over the year, outperforming their North American peers who returned 9.32% over the same period.
January 2020 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.57% in December and 8.74% for the year, recording its strongest annual return since 2013. The risk-on sentiment resulting from positive geopolitical development provided support for risk assets as the two-leading economies officially reached an agreement that de-escalated their 18-month long trade tension. The global equity market as represented by the MSCI ACWI (Local) ended 2019 up 23.44%. US equities recorded new all-time highs, with the S&P 500 up 2.86% in December on the back of market optimism toward the US-China phase-one deal which was signed in early 2020. Over in Europe, UK equities outperformed their European peers, thanks to the landslide victory of the UK Conservative Party, which resulted in better clarity surrounding Brexit. The FTSE 100 rose 2.67% during the month. On a similar note, positive trade development, monetary stimulus, and strong macroeconomic data acted as a tailwind to the performance of Asian equity markets, especi
January 2020 | Eurekahedge
Structured credit traces its history back to the 20th century and has been a part of institutional and hedge fund portfolios for decades. Hedge fund managers focusing on structured credit could largely be dichotomised into those who generate returns from beta exposure to the asset class, and those who exploit mispriced instruments resulting from market inefficiency. Structured credit instruments result from the securitisation process in which multiple debt obligations are packed into interest-bearing securities whose cash flows are then sold to investors. This asset class has remained attractive to investors due to their ability to offer good return potentials and low rate of losses while providing diversification from other fixed income assets. The securitisation process also allows the final product to be tailored to an investor’s specific risk profile and constraints. On the other hand, the complexity of the instrument may result in heightened liquidity risk, and certain structured
January 2020 | Eurekahedge
The Eurekahedge Asian Hedge Fund Index was up 7.41% year-to-date as of November 2019, supported by the robust performance of risk assets in the region resulting from the progress of the US-China trade talks. The underlying equity market, as represented by the MSCI AC Asia Pacific IMI gained 15.19% over the same period. The trade negotiation process between the two countries has faced considerable challenges throughout the year, notably when the PBOC allowed the yuan to weaken past the symbolic level of seven. The US Treasury department responded by labelling China as a currency manipulator, further escalating the tension between the two economies. However, market sentiment improved when the trade talks resumed in October, and finally concluded in a phase-one deal which was eventually signed in January 2020, shortly after the removal of China from the US Treasury list of currency manipulators. The positive geopolitical development surrounding the trade war boosted market sentiment and a
January 2020 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at January 2020. 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.
December 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.90% in November, bringing its year-to-date return to 7.27%. The global hedge fund industry has been supported by the global equity market rally on the back of optimism over the US-China trade negotiation progress and dovish central bank policies throughout the year. Positive geopolitical developments surrounding the trade war and Brexit have also sustained investors’ risk sentiment over the recent months. Returns were positive across regions, with North American fund managers returning 1.59% in November, on the back of the region’s equity market performance which resulted in a new all-time high for the S&P 500. On a year-to-date basis, fund managers focusing on Asia ex-Japan were up 9.42% over the first 11 months of the year, outperforming their North American peers who returned 7.86% over the same period.
December 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.90% in November, supported by the market’s optimism towards the progress of the US-China trade talks. The underlying equity market as represented by the MSCI ACWI (Local) gained 2.76% over the same period. US equity markets recorded new all-time highs during the month, as a result of the strong corporate earnings combined with the positive geopolitical development. European equities also pushed higher as Germany narrowly avoided recession, defying market expectations. The CAC40 and DAX gained 3.06% and 2.87% over the month. Over in Asia, the enactment of the Hong Kong Human Rights and Democracy Act was seen as a possible headwind against the progress of the ongoing US-China trade negotiations, weighing on the region’s risk outlook. Meanwhile, the wait-and-see approach of the Fed and the ECB towards their policies pushed the yields of the sovereign bonds higher during the month, resulting in the weakness of the government bond market.
December 2019 | Eurekahedge
Hedge fund managers have returned 7.27% as of November 2019 year-to-date, supported by the global equity market recovery throughout the year. Optimism over the progress of the US-China trade talks and accommodative central bank policies since the beginning of the year have acted as tailwinds for the hedge fund industry, resulting in positive performance for most geographic and strategic mandates for the year. The global hedge fund industry AUM currently stands at US$2,272.8 billion, down US$19.5 billion year-to-date as investor redemptions persisted in spite of positive performance-driven growth.
December 2019 | Eurekahedge
The Eurekahedge European Hedge Fund Index was up 5.16% as of October 2019 year-to-date, supported by positive geopolitical developments surrounding Brexit and accommodative ECB policies. The region’s underlying equity market, as represented by the MSCI AC Europe IMI gained 15.79% over the same period. The slowing economic growth in the region remained as the central bank’s primary concern, particularly after Germany’s gross domestic product contracted in Q2 2019, raising concerns over a recession. In response, the ECB enacted a deposit rate cut and restarted their asset purchase programmes in September, which boosted the equity market in the region. The DAX and CAC40 were up 21.86% and 21.12% respectively since the start of the year. The UK market was spooked by PM Boris Johnson’s firm stance towards no-deal Brexit and decision to prorogue the parliament in August, resulting in a 5.00% decline of the FTSE100 over the month. However, the situation has reversed as the PM reached an agree
December 2019 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2019. Find out more about European 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.
December 2019 | Eurekahedge
Stefan Wattinger is the ILS Product Specialist of Credit Suisse Insurance Linked Strategies Ltd., which manages a number of funds focused on insurance linked investments.
November 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index declined 0.31% in October, trailing the global equity market which edged 1.93% higher over the month, as represented by the MSCI ACWI (Local). Global equities rallied throughout the month, supported by the continuation of the US-China trade talks which culminated in a partial trade agreement between the two countries. The bond market saw yields climb as the risk-on sentiment returned to the equity market and the Fed signalled that they are done with rate cuts for the moment. Returns were positive across regions, with Asia ex-Japan mandate returning 2.36% for the month. On a year-to-date basis, fund managers focusing on Asia ex-Japan were up 9.74% over the first 10 months of the year, outperforming their North American peers who returned 6.26% over the same period.
November 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.31% in October, trailing behind the MSCI ACWI (Local), which ended the month up 1.93% over the same period. The resumption of the US-China trade talks resulted in a partial trade agreement between the two largest economies. The positive development prompted President Trump to postpone the scheduled tariff hike on Chinese goods, which boosted US and Asian equities during the month. In the UK, the region’s equity market underperformed their global and EU peers despite the 3-month Brexit extension granted by the EU lawmakers, as a result of the stronger British pound. Government bond yields strengthened over the month, supported by investors’ risk-on sentiment combined with the Fed’s less dovish remark as they signalled a pause in cutting rate for the foreseeable future.
November 2019 | Eurekahedge
Altinvestor Europe 2019 is Eurekahedge’s third European asset owner forum and the seventh of its kind across Europe and APAC regions, delivering exclusive insights from family offices as well as institutional asset owners on exploring alternative investments and optimizing portfolio returns. The event is aimed at facilitating a private environment for candid discussions between investors and to serve as a melting pot of ideas connecting Europe’s leading institutional investors under one roof.
November 2019 | Eurekahedge
The Eurekahedge Latin American Hedge Fund Index was up 8.54% as of September 2019 year-to-date, narrowly underperforming the MSCI EM Latin America Index, which gained 10.24% over the same period. The market showed optimism following the consecutive rate cuts announced by the country’s central bank, which lifted the region’s equity markets. Investors also reacted positively to the approval of the pension reform in the lower house as the government saw the overhauling of the pension system critical in boosting the economic growth of Latin America’s biggest economy. Meanwhile, the region’s gross domestic product shrank in the first quarter this year for the first time since 2016. The delayed adoption of the pension reform was seen as a key reason for the weaker economic recovery of the country as international businesses were holding back their investment until the promulgation of the said reform. The Bovespa Index was up 19.18% as of September 2019 year-to-date.
November 2019 | Eurekahedge
Emerging market mandated hedge funds were up 6.33% year-to-date, recovering the losses they suffered in 2018 on the back of the accommodative stance of the Fed and the market optimism towards the US-China trade negotiations, which boosted the equity markets of the developing economies over the year. During the first quarter of the year, the Federal Reserve completely shifted their stance from restrictive to accommodative monetary policy following the multiple equity markets sell-offs in 2018 and strong criticisms from the US President. Meanwhile, the market showed optimism towards the US-China trade talks as the two economic powerhouses agreed to resume the negotiations after the US President decided to postpone additional tariffs on the remaining US$300 billion of Chinese imported goods in August. The Shenzhen and Shanghai Composites were up 25.82% and 16.49% as of September year-to-date respectively. Over in India, the region is facing challenges surrounding liquidity risk owing to t
November 2019 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at November 2019. Find out more about Latin American 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.
November 2019 | Eurekahedge
Tom James is CIO & CEO and a co-founder of the CEMP - NR Capital Trade Flow Fund SP (the Fund), the innovative digitised trade finance solution for bulk physical commodity transactions being shipped or stored around the world. He is widely recognised as a leading practitioner in the global natural resources market with over 30 years of commercial exposure gained through broad ranging senior regulated roles in financial institutions (including Bank of Tokyo Mitsubishi UFJ, Credit Agricole and Credit Lyonnais) and various trading firms including BHP Billiton.
John Collis is a co-founder of the Fund and holds the position of Chief Legal Officer (CLO) and Head of Compliance. As well overseeing the development of the Fund’s critical legal infrastructure and working with leading Counsel on its enforceability, John has overseen the classification of the specialist intellectual property developed and acquired by TradeFlow and its licensing; and has worked with insurance underwriters
October 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index declined 0.30% in September, trailing the global equity market which edged 2.04% higher over the month, as represented by the MSCI ACWI (Local). Global equities rallied through the earlier half of the month, supported by the resumption of the US-China trade talks, only to retreat toward the end of the month as an impeachment inquiry was launched against the US President. The bond market saw yields decline as major central banks continued with their easing policies: the Fed cut its rate for the second time this year in September, and the ECB announced new stimulus packages, including the restart of their asset purchases. Returns were mostly positive across regions, with the exception of fund managers focusing on Europe, who were down 0.10% in September. Nonetheless, the mandate is still up 3.75% on a year-to-date basis. Japan-focused hedge funds were up 1.26% throughout the month, outperforming their Asia ex-Japan peers who were up 0.97%.
October 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.30% in September, underperforming the MSCI ACWI (Local), which ended the month up 2.04%. The resumption of the US-China trade negotiations combined with the withdrawal of the controversial Hong Kong extradition bill boosted the two regions’ equity markets early into the month. However, the impeachment inquiry against the US President Donald Trump wiped out a portion of the gains posted by US equities, dragging the S&P 500 down 1.01% through the week ending 27 September. Despite the improving risk sentiment among investors throughout the month, the global bond markets saw yields decline due to the accommodative stance adopted by the major central banks. The ECB announced new stimulus measures, including the resumption of asset purchases, while the Fed decided to cut its rate for the second time this year in September. The commodity market saw a sharp increase in oil prices during the month following the drone attack on Aramco oil facilities,
October 2019 | Eurekahedge
Hong Kong has been a major focal point within the Asia Pacific hedge fund industry, currently accounting for US$92.1 billion of assets under management (AUM), overseen by 449 hedge fund managers as of August 2019. Proximity to the fast-growing economy of China, availability of highly-trained talent base, as well as robust regulatory landscape have successfully attracted both foreign and domestic hedge fund managers to base their operations in the special administrative region. The Hong Kong hedge fund industry has continued to grow and reach new highs on the back of robust investor allocations and performance-driven growth in the post-GFC era. Seen as the gateway to China, Hong Kong is uniquely positioned to benefit from foreign asset owners interested in allocating into the Greater China region, as well as domestic asset owners looking to gain international exposure.
October 2019 | Eurekahedge
The Eurekahedge North American Hedge Fund Index was up 5.71% year-to-date as of August 2019, underperforming the underlying equity market as represented by the MSCI North America IMI, which gained 16.47% over the same period. The progress of the US-China trade negotiations combined with the exhibited accommodative stance of the Fed acted as tailwinds for North American hedge fund managers, resulting in Q1 return of 5.22% - the strongest since 2006. The positive developments of the US-China trade talks prompted President Trump to delay the scheduled tariff increase in March, which further uplifted the risk sentiment among investors during the first few months of the year. However, the robust rally in the equity market ended in May, following President Trump’s decision to increase the tariffs imposed on the Chinese imported goods resulting in the breakdown of their trade negotiation. Over the same month, President Trump blacklisted Huawei due to national security concerns. The tech-heavy
October 2019 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at October 2019. Find out more about North American 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.
September 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.17% in August, outperforming the global equity market which slumped 2.37% over the month, as represented by the MSCI ACWI (Local). The re-escalation of the US-China trade war combined with other political concerns resulted in weak global equity performance during the month. Despite the ongoing trade talks, the US imposed additional tariffs to US$300 billion of Chinese imported goods. The move prompted China to levy retaliatory tariffs to US imported goods, which rattled the world’s financial markets. Meanwhile, the deteriorating bilateral relationship between Japan and South Korea, the ongoing protests in Hong Kong, and the heightened risk of a no-deal Brexit also contributed to the risk-off sentiment among investors. Fund managers focusing on North America and Asia ex-Japan were down 0.78% and 0.96% respectively in August. Nonetheless, the two mandates are still up 6.04% and 6.83% respectively on a year-to-date basis, owing to their strong per
September 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.17% in August, outperforming the MSCI ACWI (Local) which ended the month down 2.37%. The US administration imposed additional tariffs to the remaining US$300 billion of Chinese imported goods, which resulted in the weakening of the CNY past the symbolic 7 per USD level early into the month. Consequently, the US Treasury Department labelled China as a currency manipulator, further intensifying the trade tension between the two countries. The risk-off sentiment among investors during the month was mostly driven by political concerns encompassing the US-China trade war, the deteriorating bilateral relationship between Japan and South Korea, the ongoing protests in Hong Kong, and the risk of a no-deal Brexit among other things. Further exacerbating the risk-off sentiment during the month, the US 2-10Y yield spread inverted for the first time since 2007, raising concerns over an impending economic recession.
September 2019 | Eurekahedge
Investors are increasingly beginning to incorporate ethical considerations into their investment decisions, a development which has given rise to the ESG framework over the years. Despite the implementation challenges which arise when screening investments against acceptable environmental, social and corporate governance themes, the trend towards a more conscientious approach to investment is here to stay, especially from the perspective of large institutional investors. Fund managers, for both actively and passively managed investment vehicles are balancing their quest for superior returns with the need to meet investor demand for responsible investing. Further, an understanding that such an approach to investment can translate into ‘ESG-induced alpha’ for managers is further helping the cause of ethically guided investing. This article looks at the performance of funds, both long-only absolute return vehicles and hedge funds, with an active ESG investment framework and how they have
September 2019 | Eurekahedge
The Eurekahedge Asian Hedge Fund Index was up 6.06% year-to-date as of July 2019, despite several political uncertainties that plagued the region. The underlying equity market as represented by the MSCI AC Asia Pacific IMI gained 7.79% over the same period. Investors’ optimism towards the US-China trade talks combined with central bank rate cuts and the Chinese stimulus program boosted the region’s equity market resulting in strong Q1 performance of Asian hedge funds. However, the risk-sentiment had shifted entirely in May following the decision of the US administration to increase the tariff to the US$200 billion of Chinese imported goods. The move prompted the Chinese government to retaliate, which resulted in the escalation of their trade conflict. The Shenzhen and Shanghai Composite Index lost 6.40% and 5.84% in May, respectively.
September 2019 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at September 2019. 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.
August 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.62% in July, with positive returns across geographic mandates. Investor optimism towards the resumption of the US-China trade talks combined with the Fed’s anticipated rate cut boosted the US equity market to a new all-time high. Meanwhile in Asia, Asia ex-Japan hedge funds managed to record positive returns of 0.73% over the month. Despite the ongoing protests in Hong Kong and the trade dispute between Japan and South Korea, Asia ex-Japan hedge funds outperformed their North American peers who gained 0.32% over the same period. Roughly 33.7% of the hedge fund managers tracked by the Eurekahedge Global Hedge Fund Database were able to generate positive returns during the month.
August 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.62% in July, supported by gains in developed market equities and bonds over the month. The MSCI ACWI (Local) ended the month up 0.83% with US equities outperforming other markets. The anticipated rate cut from the Federal Reserve combined with the resumption of the US-China trade talks after the breakdown in May boosted the US equity markets and pushed Wall Street’s three major stock indices to new all-time highs during the month. On the other hand, the trade dispute between Japan and South Korea, together with lacklustre economic data in India pushed Asian equities lower. Returns were positive across geographic mandates in July, with North American fund managers gaining 0.32% and Asia ex-Japan fund managers up 0.73%. Fund managers utilising equity long-bias strategies gained 0.62% throughout the month, pushing their year-to-date return to 11.65%.
August 2019 | Eurekahedge
Trade finance hedge funds have gained traction over recent years, driven by investor demand for alternative asset classes with low volatility and consistent return, as well as low correlation against the broader financial market. The sector began its rapid growth following the global financial crisis in 2008, when banks started reducing their trade finance exposure to meet Basel III capital requirements. To address the lack of a standard benchmark for this niche hedge fund strategy, Eurekahedge launched the industry’s first trade finance hedge fund index in 2018, providing institutional investors with a benchmark index representing the performance of trade finance hedge fund managers.
August 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 5.80% year-to-date, trailing the underlying equity market as represented by the MSCI ACWI IMI which was up 14.44% over the same period. The trade optimism resulting from the trade truce between the US and China, combined with the complete shift of the Federal Reserve’s stance on rates supported global equities over the first four months of the year. However, the trade negotiation between the world’s two largest economies collapsed in May, and the Trump administration increased tariffs on US$200 billion of Chinese imported goods, prompting the Chinese government to do the same.
August 2019 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at August 2019. Find out more about global 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.
August 2019 | Eurekahedge
Dr. Peng She is the co-founder and CIO of Golden Pine Capital. He graduated from Tsinghua University in Beijing with Bachelor, Master and PhD degrees. In June 2016, he established Golden Pine Capital, the investment manager of Golden Pine Fund. In 2011, he joined Greenwoods Asset Management. He was senior analyst of cyclicals and utilities. He was also directly involved in portfolio management, able to earn rich experience in both domestic and offshore market. From 2006 to 2011, he worked for BASF and Dow Chemical Company, world's top two chemical companies. He was responsible for all the external innovation and technology cooperation in the Greater China District.
July 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 1.83% in June, recouping the losses it suffered back in May as the global equity markets recovered during the month. Investor optimism over the progress of US-China trade talks, coupled with growing expectations of a Fed rate cut supported equity markets around the globe, with the MSCI AC World Index rallying 5.41% in June. Roughly 78.2% of the hedge fund managers tracked by the Eurekahedge Global Hedge Fund Database were able to generate positive returns amidst the risk-on environment during the month. On a year-to-date basis, hedge fund managers have returned 5.84%, recording their strongest 1H performance since 2009.
July 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.83% in June, recording its strongest first half return of 5.84% since 2009. Hedge fund managers benefited from strong equity market performance on the back of optimism over the progress of US-China trade talks and the growing expectation of a rate cut of the Federal Reserve over the month. The global equity market as represented by MSCI ACWI (Local) gained 5.41% during the month. The expected meeting of the US President Donald Trump and his Chinese counterpart Xi Jinping during their G-20 summit in Osaka renewed investor optimism on the resolution of the trade conflict which has plagued the market since last year. Meanwhile, weak economic data combined with rising concerns of a global economic slowdown prompted the Federal Reserve to reassess their stance. The expectations that the Fed will soon cut rates resulted in declining bond yields throughout the month, with the US 10-year bond yield dipping to its lowest level since November 2016.
July 2019 | Eurekahedge
The global hedge fund industry has witnessed a trend of declining management and performance fees over the past decade, calling into question the traditional “2 and 20” fee structure the industry was famous for. Mediocre returns over recent years – as opposed to the double-digit annual returns investors had come to expect from hedge funds pre-2008, along with increasing competition within the industry and tighter regulation over alternative investment vehicles are some key factors which have contributed to this trend. Investor experience during the 2008 global financial crisis had resulted in more disintermediation within the industry, with institutional investors engaging hedge fund managers directly.
July 2019 | Eurekahedge
The Eurekahedge European Hedge Fund Index was up 2.96% year-to-date as of May 2019, trailing behind the region’s underlying equity market as represented by the MSCI AC Europe IMI which gained 8.92% over the same period. In 2018, European hedge fund managers posted losses under the combined onslaught of Brexit negotiation uncertainties, the Italian debt crisis and the escalation of the US-China trade war.
July 2019 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at July 2019. Find out more about European 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.
July 2019 | Eurekahedge
The Eurekahedge Long-Only Absolute Return Fund Index was up 6.96% as of May 2019 year-to-date, recouping some of the losses suffered by absolute return fund managers in 2018. Over the first five months of 2019, absolute return funds have outperformed funds of hedge funds and hedge funds which returned 4.39% and 3.90% respectively, as they benefited from the equity market rally which resulted from accommodative central bank policies and robust Q1 economic data. Optimism over the progress of the US-China trade talks and dovish stance exhibited by major central banks pushed the global equity market since the beginning of the year, as seen from the 8.53% year-to-date return posted by the MSCI ACWI IMI (Local).
July 2019 | Eurekahedge
Dr. Peng She is the co-founder and CIO of Golden Pine Capital. He graduated from Tsinghua University in Beijing with Bachelor, Master and PhD degrees. In May 2016, he established Golden Pine Capital, the investment manager of Golden Pine Fund. In 2011, he joined Greenwoods Asset Management. He was senior analyst of cyclicals and utilities. He was also directly involved in portfolio management, able to earn rich experience in both domestic and offshore market. From 2006 to 2011, he worked for BASF and Dow Chemical Company, world's top 2 chemical companies. He was responsible for all the external innovation and technology cooperation in the Greater China District.
June 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index slumped 0.71% in May, recording its first monthly decline in 2019 after posting four consecutive positive months. On a year-to-date basis, hedge fund managers are still up 4.32%, supported by the recovery in global equity and bond markets in the first quarter. The return of the US-China trade tension during the month of May weighed on the global economic outlook, resulting in the weak performance of global equities. The MSCI AC World Index plummeted 6.12% in May, as investors were unnerved by the escalating trade disputes. On the other hand, global government bonds saw gains as yields fell on the back of expectations that the Fed will soon cut rates in response to weak economic outlook.
June 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.71% in May , following four consecutive positive months since the beginning of the year. Hedge fund managers struggled to generate returns amidst the risk-off environment resulting from the re-escalation of the US-China trade war. The Trump administration’s decision to raise tariffs on Chinese imports prompted the other side to launch retaliatory tariffs, leading to worsening global economic outlook which weighed on global equities during the month. The MSCI ACWI (Local) ended the month down 6.12%. On the other hand, the US 10-year treasury yield dipped to its lowest point in almost two years, as investors expect that the Fed will have to cut interest rates in near future. On a year-to-date basis, hedge fund managers are still up 4.32% as of May 2019.
June 2019 | Eurekahedge
The Eurekahedge Global Hedge Fund Awards have been launched with the intent of identifying and celebrating the very best of hedge fund managers in the Americas, Europe, Middle East & Africa (EMEA) and Asia Pacific (APAC) across 45 award categories carefully designed to track key strategic and regional mandates within the global hedge funds industry. In addition to this, we have introduced specialised awards that recognise the performance of new entrants to the industry as well as ‘consistency awards’ for established players that have continued to add value for institutional investors over the years. As a first for the hedge fund industry, the funds are evaluated over the same time period under consideration for all regional awards (Americas, EMEA and APAC) using a consistent methodology that draws on the expertise of our judges who have extensive years of experience allocating institutional money to hedge funds across the globe.
June 2019 | Eurekahedge
Mr. Klein is Founder and CIO of Global Alternative Investments (GAI). His 37 years of experience began as a stockbroker working at local and multi-national firms, where he developed his knowledge in the US, Japanese and Chinese equity markets, along with a matching proficiency in precious metals and major currencies, all with an accompanying expertise in derivatives. His comprehensive methodology includes in-depth technical, quantitative, fundamental and valuation analyses. Over a multi-decade period, Sid has identified multiple historic turning points in the major markets and asset classes, often within days. He has appeared in the popular print and TV media since the nineties, while also sharing his commentaries on specialised websites.
June 2019 | Brian T. Daly and Joshua B. Wright - Schulte Roth & Zabel LLP
The National Futures Association, the self-regulatory organisation for the commodity futures and swaps industry, recently updated its rules to impose “swaps proficiency requirements” on associated persons of NFA members that engage in swaps-related activities. These requirements are likely to be applicable to a significant number of hedge fund advisers (i.e., advisers that are, or are required to be, registered with the Commodity Futures Trading Commission and to be NFA members). While most private equity sponsors are not likely to fall within the scope of any NFA licensing requirement, they should take this opportunity to confirm that the basis for any exemption remains valid.
May 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.06% in April, recording its fourth consecutive positive month of 2019. On a year-to-date basis, the index was up 5.15%, supported by the recovery in global equity and bond markets since the beginning of the year. Promising economic data, dovish central banks and optimism over the US-China trade talks over the first quarter helped fund managers recover from the losses they suffered last year. The MSCI AC World Index rallied 3.38% in April, supported by robust labour market data and strong earnings in the US. Despite ongoing concerns over slowing growth, China’s economy expansion over the first quarter beat estimates, supporting the region’s equity markets. However, the positive results led to unease among investors as the PBOC may decide to scale back their policy support. The majority of hedge fund managers tracked by Eurekahedge ended the month of April up, with those focusing on North America and Japan outperforming their peers. Investor all
May 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 1.06% in April, after recording one of its strongest Q1 returns post-crisis. Hedge fund managers have recorded four consecutive months of positive performance since the beginning of 2019, supported by strength in the global equity and bond markets which resulted from encouraging economic data and accommodating central bank policies. On a year-to-date basis, hedge fund managers are up 5.15% as of April 2019. Positive earnings surprises helped renew investors’ optimism in the global equity market, which rallied 3.38% during the month as represented by the MSCI ACWI (Local). Optimism over the progress of the US-China trade talks helped bolster the equity markets around the globe over the first four months of the year, counterbalancing concerns over economic growth slowdown. However, recent development of the US-China negotiations pointed towards another escalation of the trade tension, with the US president announcing more tariffs in early May.
May 2019 | Eurekahedge
Altinvestor APAC 2019 is Eurekahedge’s fourth Asian asset owner event and the sixth of its kind across Europe and APAC, delivering exclusive insights from family offices as well as institutional asset owners on exploring alternative assets and optimising portfolio returns. The event is aimed at facilitating a private environment for candid discussions between investors and to serve as a melting pot of ideas connecting Asia’s leading institutional investors under one roof. The first day of the event was geared towards large asset owners such as pension funds, while the second day focused on single and multi-family offices.
May 2019 | Eurekahedge
The Eurekahedge Latin American Hedge Fund Index was up 3.82% as of March 2019 year-to-date, in contrast to the 6.74% gain posted by the MSCI EM Latin America IMI over the same period. The region’s equity markets proved rather resilient throughout the fourth quarter of 2018, which saw the global equity market slumping in the face of the US-China trade war and concerns over economic slowdown. Brazil’s equity market reacted positively to the election of President Jair Bolsonaro, which improved the country’s economic outlook following the dip in mid-2018. Political uncertainties and social unrest continued to plague the region, and together with Argentina’s currency crisis and Venezuela’s economic collapse pushed Latin America’s risk outlook downward. A number of Latin American currencies also depreciated against the US dollar, and in some cases the depreciation led to rising inflation levels.
May 2019 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at May 2019. Find out more about Latin American 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.
April 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.06% in March, wrapping the first quarter of the year gaining 4.36% year-to-date. Hedge fund managers narrowly trailed behind the global equity market as represented by the MSCI AC World Index which gained 1.09% in March. The global equity and bond markets have rallied through the first quarter of 2019, supported by the dovish stance exhibited by major central banks, as well as the optimism over the US-China trade negotiations. On the other hand, concerns over slowing economic growth have persisted through the quarter, with growth forecasts being cut. The majority of hedge fund managers tracked by Eurekahedge recorded positive returns in March, with those focusing on Asia ex-Japan countries posting strongest gains. Despite the positive performance exhibited by hedge fund managers, investor appetite remained muted as the industry saw net investor outflows throughout the month.
April 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 1.06% in March , resulting in the strongest post-crisis Q1 return of 4.36%. Hedge fund managers recorded three consecutive months of positive performance, supported by strength in the global equity and bond markets as central banks shy away from tight monetary policies. Optimism over the progress of the US-China trade talks helped bolster the equity markets around the globe, counterbalancing concerns over economic growth slowdown.
April 2019 | Eurekahedge
ANDA Cruise, FengHe Asia Fund, Golden Pine Fund, KS Asia Absolute Return Fund, Realm High Income Fund, and Segantii Asia Pacific Equity Multi-Strategy Fund outshine peers in 2018
The Asian hedge fund managers tracked by Eurekahedge ended 2018 down 8.71% on average, recording their worst yearly performance since the 2008 global financial crisis. In spite of a strong start in January, the return of market volatilities in February and the escalation of the trade tension between the United States and China pushed the majority of Asian hedge funds into the red for the year. Compared to their global peers, fund managers focusing on Asia suffered heavier blows from the equity market sell-offs in response to the US Federal Reserve’s aggressive rate hikes throughout the year.
April 2019 | Eurekahedge
The Eurekahedge Asian Hedge Fund Index was up 4.15% year-to-date as of February 2019, trailing behind the underlying equity market represented by the MSCI AC Asia Pacific IMI which gained 8.56% over the same period. Asian hedge funds recovered from the losses incurred in 2018 as a result of the escalation of the international trade conflict between the world’s two largest economies, and the aggressive Fed rate hikes which triggered equity sell-offs in October and December 2018. In 2019, the Trump administration delayed the scheduled tariff increase to Chinese imported goods, reflecting the progress of the trade talks between the US and China.
April 2019 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at April 2019. 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.
April 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 3.28% as of February 2019 year-to-date as the industry recovered from the losses suffered in 2018. Last year, hedge funds recorded their worst annual performance since the 2008 global financial crisis as the escalation of the US-China trade war, aggressive rate hikes from the US Federal Reserve, and concerns over slowing global growth weighed on global equities. Going into 2019, the risk sentiment had improved due to the progress of the US-China trade negotiations, which showed that both parties are serious in resolving the conflicts between their trade and industrial policies.
April 2019 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at April 2019. Find out more about global 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.
March 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.89% in February, supported by the continued recovery of the global equity market which pushed the MSCI AC World Index 3.03% higher. The majority of hedge fund managers tracked by Eurekahedge recorded positive returns in February, with those utilising long/short equities and event driven strategies outperforming other mandates. The patient wait-and-see approach to raising rates from the US Federal Reserve and optimistic anticipation over the potential resolution of the US-China trade war helped sustain the global equity market performance throughout the month. Apart from that, slowing economic growth across the globe has prompted central banks to raise concerns over lower inflation and cut their short-term growth forecasts, resulting in lower yields in the bond markets.
March 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.89% in February , bringing its year-to-date return to 3.26%. The risk-on sentiment among investors driven by the Fed’s patient stance and optimism over the potential resolution of the US-China trade tension persisted through the month, sending global equity markets on a rally through February. The MSCI AC World Index (Local) gained 3.03% during the month, resulting in 10.61% year-to-date return over the first two months of 2019. On the other hand, growth forecast cuts from developed economies’ central banks raised concerns over lower inflation, sending bond yields lower throughout the month.
March 2019 | Eurekahedge
Greater China equity hedge funds ended 2018 down 14.78% after posting negative monthly returns over the better part of the year as fund managers struggled to generate profits amidst the volatile market. The escalation of the US-China tariff spat, combined with the US Federal Reserve’s aggressive rate hikes throughout the year severely weighed on the equity markets across the emerging markets, and especially China. Difficult trading situation arising from the return of market volatility and equity market sell-offs resulted in substantial performance-driven losses for the managers comprising the region’s US$28.7 billion hedge fund industry.
March 2019 | Eurekahedge
The Eurekahedge North American Hedge Fund Index was up 3.66% in January 2019, underperforming the region’s equity markets as represented by the MSCI North America IMI which gained 8.51% over the month. North American hedge fund managers ended 2018 down 2.97% as concerns over the US-China trade tension and fed rate hikes weighed on their returns. Going into 2019, fund managers kicked off the year by recording strong gains in January, thanks to the improving optimism over the US-China trade talks. On the other hand, the US Federal Reserve has adopted a patient, wait-and-see stance for their future rate decisions as a response to the muted inflation caused by the sharp decline of oil prices and the risk of global economic slowdown. The dovish tone exhibited by the Fed acted as a tailwind to the US equity markets and pushed the S&P 500 and DJIA by 7.69% and 7.17% higher respectively in January, recovering a sizeable portion of the steep losses they suffered in December last year.
March 2019 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at March 2019. Find out more about North American 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.
March 2019 | Eurekahedge
FK Capital Management Ltd. delivers a distinct value-oriented long/short equity strategy centred on achieving long-term capital growth and avoiding large drawdowns. Based in the Bahamas, the Firm combines an independent view of value investing, a commitment to following game-changing trends and forward-thinking brands poised to capture next-generation consumption patterns driven by Millennials and Gen Z. FK Capital integrates growth into its value investment strategy, with each holding supported by a catalyst that will accelerate long-term earnings. As a long-biased fund that’s poised to capitalise on key demographic and cultural shifts, the fund has significant exposure to global Information Technology and Consumer Discretionary opportunities – where disruption is occurring.
March 2019 | Andrew Boyce, Annette Alexander and Christopher Anderson - Carey Olsen
The flexible and pragmatic approach adopted by the GFSC in relation to investment funds aimed at the institutional or high net worth investor market has helped the significant growth of this sector in Guernsey.
Nowadays, most funds formed in Guernsey tend to be for the institutional or high net worth individual markets, with hedge funds, funds of hedge funds, private equity and property funds being especially popular.
Guernsey is particularly keen to attract high quality hedge fund business. Following consultation with the industry, the GFSC released a guidance note in November 2003 setting out a more relaxed framework for the operation of hedge funds, which included waivers of the various fund rules in four key areas.
February 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index rallied 2.32% in January, supported by the strength in global equity markets which pushed the MSCI AC World Index 7.36% higher, recovering from the losses it suffered back in December. Cautious tone from the Federal Reserve and positive expectations on the US-China trade talk resulted in strong gains across the global equity and fixed income markets during the month, despite lingering concerns over slowing economic growth. Weaker US dollar and improving trade outlook acted as tailwinds for fund managers with exposure toward Asia and emerging markets in general, resulting in positive returns across geographic mandates throughout the month.
February 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index kicked off the year with a solid showing, as it gained 2.32% in January, in contrast to how the index declined 4.08% last year, following five consecutive months of losses. Dovish stance exhibited by the Federal Reserve signalled higher level of flexibility in future rate changes, and together with greater optimism over trade talk progresses between the United States and China they supported the global equity market performance throughout the month.
February 2019 | Eurekahedge
The Eurekahedge Funds of Funds Index ended 2018 down 4.58%, trailing behind the average hedge fund which would have lost 4.08% throughout the year. The persistent underperformance of multi-manager funds in terms of net returns has sparked questions over the value proposition offered by such structure, which was supposed to provide investors access to a wider pool of fund managers, as well as cheaper due diligence costs for smaller investors planning to invest in multiple single manager hedge funds.
February 2019 | Eurekahedge
Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, as UCITS embodied by strong regulation resulting to a high level of investors protection with certain restrictions such as liquidity of the underlying assets and leverage caps to provide added transparency to investors.
February 2019 | Eurekahedge
The Islamic finance industry is a niche market predominantly serving the needs of the world’s Muslim population. Products marketed under the umbrella of Islamic finance comply with a different investment philosophy as opposed to traditional investment philosophy which the rest of the world are familiar with. Under a Shariah-compliant framework, transactions which are considered to be unethical under Islamic law are prohibited and instead, fund managers invest in products which are compliant with Islamic guidelines.
February 2019 | Eurekahedge
Eurekahedge’s UCITS hedge funds infographic sums up the industry as at February 2019. Find out more about UCITS 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.
February 2019 | Michael R. Butowsky and Emily O. Harris - Jones Day
The Situation: The Office of Compliance Inspections and Examinations ("OCIE") of the U.S. Securities and Exchange Commission has released its 2019 Examination Priorities ("Report"). The Result: The Report details key areas where OCIE currently intends to focus its examination resources in 2019. The Report's key areas that should be of particular interest for private fund advisers (e.g., advisers to real estate, hedge, private equity, and venture capital funds) include fees and expenses, conflicts of interest, portfolio management and trading, digital assets, and cybersecurity.
January 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 1.31% in December , outperforming the MSCI AC World Index which declined 7.61% in what turned out to be the worst month of 2018 for global equity markets. Concerns over the Fed’s stance which turned out to be less Dovish than what investors expected triggered major equity sell-offs around the globe, and sent major equity indices plummeting during the month.
January 2019 | Eurekahedge
The Eurekahedge Hedge Fund Index ended the month of December down 1.31% , dragging its year-to-date decline to 3.85% after five consecutive months of losses. Concerns over the US treasuries yield curve inversion and further Fed tightening in 2019 triggered a sell-off across the global equity markets, marking December as the worst month of 2018 for equity markets.
January 2019 | Eurekahedge
The Eurekahedge ILS Advisers Index ended 2018 down 2.93%, recording its second consecutive year of losses after 2017, during which the index slumped 5.60%. The catastrophic losses incurred by Hurricane Florence in September and Hurricane Michael in October weighed on the ILS fund managers’ returns throughout the fourth quarter of the year.
January 2019 | Eurekahedge
Hedge fund managers were on track to record their worst year since the 2008 global financial crisis as the combined onslaught of the global trade tension, Fed rate hikes, and various political concerns weighed on their returns. The <em>Eurekahedge Hedge Fund Index</em> was down 2.53% as of November 2018 year-to-date, slightly ahead of the underlying equity markets as represented by the MSCI AC World Index which slumped 2.72% over the same period. The industry kicked off the year with strong performance throughout January 2018, continuing the trend observed by the hedge fund industry in 2017. However, market uncertainty arose when the Trump administration imposed higher tariffs against imported Chinese goods due to their alleged unfair trade practices.
January 2019 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at January 2019. Find out more about global 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.
January 2019 | Eurekahedge
Matthew Swann is Principal, Hiscox Re Insurance Linked Strategies, a US$1.6+ billion ILS fund manager within global specialty insurance group Hiscox Ltd (LND: HSX). Matthew joined Hiscox in 2007 as a catastrophe modeler where he developed retrocession pricing tools before moving to reinsurance underwriting in 2011. He joined Hiscox Re ILS in 2015 as Portfolio Manager and is currently responsible for advising on investment and product strategy, and business development. Matthew holds a geography degree from the University of Oxford and a PhD in climate prediction from the University of East Anglia.
December 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.14% in November while underlying markets as represented by the MSCI World Index edged 1.11% higher during the month as equity markets recovered from the decline in October. Dovish tone from the Fed chair raised expectations of a more gradual rate hike pace, providing a tailwind for equity markets around the globe. Positive anticipation over a potential truce between Trump and Xi during the G20 summit has also helped improve market sentiment throughout the latter half of the month.
December 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index ended the month of November down 0.14%, dragging its year-to-date decline to 2.36%. Hedge fund managers struggled to position themselves to capture the upward movement in the equity markets as they recovered from the slump in October. Throughout the month, only 24.3% of the hedge fund managers tracked by the <em>Eurekahedge Hedge Fund Index</em> were able to outperform the global equity market, as represented by the MSCI AC World Index (Local) which gained 1.11% in November.
December 2018 | Eurekahedge
The year 2018 has not been very friendly toward the hedge fund industry in general, with the Eurekahedge Hedge Fund Index down 2.36% year-to-date, in contrast to how it returned 8.51% last year. The return of market volatility, combined with the escalation of the US-China trade war around the middle of the year, as well as the political uncertainties surrounding Brexit negotiation and Italy’s debt level have exerted significant pressure on the hedge fund industry.
December 2018 | Eurekahedge
The Eurekahedge European Hedge Fund Index slumped 2.08% as of October 2018 year-to-date, ahead of the underlying equity market as represented by MSCI AC Europe IMI (Local) which declined 7.19% over the same period. The region’s equity markets have suffered from the pressure exerted by various political concerns in Italy and the United Kingdom. Unrealistic election promises by the Italian government led to a 2019 budgetary plan which was contradictory to their pledge of cutting down their debt, prompting criticism at Brussels.
December 2018 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2018. Find out more about European 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.
November 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 2.27% in October while underlying markets as represented by the MSCI World Index declined 7.33% over the same period. Concerns over rising interest rates in the US coupled with the prospects of political indecisiveness and turmoil in Washington following the Democrat’s House win saw US markets trade lower and give back their gains for the year.
November 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index declined 2.27%, throughout the volatile month of October, dragging its year-to-date decline to 2.15% in what turned out to be the worst month for the global hedge fund industry since 2011. Despite the carnage in the global equity markets, the majority of the hedge fund managers tracked by Eurekahedge outperformed the underlying market as represented by the MSCI ACWI AC (Local), which slumped 7.33% during the month.
November 2018 | Eurekahedge
The year 2018 might not have been the best year for the hedge fund industry, with the return of market volatilities in the first quarter and the immediately following global trade friction between the world’s two strongest economies. The equal-weighted Eurekahedge Hedge Fund Index was up 0.12% as of September 2018 year-to-date, as fund managers struggled to generate profits amidst the volatile market and difficult trading situation throughout the year. The industry has also seen multiple liquidations of high-profile hedge funds overseeing billions of dollars of assets, as they were incapable of generating returns beyond what the fund managers and investors deem acceptable.
November 2018 | Eurekahedge
The Eurekahedge Latin American Hedge Fund Index was up 2.14% as of September 2018 year-to-date, ahead of the MSCI EM Latin America IMI Index which declined 0.19% over the same period. The markets showed optimism on the outcome of the recent Brazilian election, as it entails the economic policy framework for the next four years. Brazil’s economy is currently undergoing an economic recovery from its deep recession between 2014 and 2016, which was caused by declining commodity prices and political concerns. As a result, Brazil was the only geographic mandate in the region that were in the positive territory, gaining 3.70% year-to-date.
November 2018 | Eurekahedge
Emerging market mandated hedge funds were down 3.96% year-to-date, as they struggled to mitigate the losses suffered from underlying equity markets, as represented by the 5.27% loss posted by the MSCI Emerging Market IMI Index (Local). The Eurekahedge Emerging Markets Hedge Fund Index was down in seven months throughout the first three quarters of 2018, marking it as one of the worst years for emerging market hedge funds since 2011.
November 2018 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at November 2018. Find out more about Latin American 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.
October 2018 | Eurekahedge
Hedge funds are investment vehicles that explicitly pursue absolute returns on their underlying investments. what does “hedge” mean? Are all hedge funds hedged? What are the definitions of the hedge fund investment strategies? Understand these hedge fund fundamentals to help to knock open the door of the hedge fund industry. On this page, we focus on explaining hedge fund basics. Interested in knowing more about hedge fund investment and how Eurekahedge hedge fund databases and services can help the investors or fund managers?
October 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.06% in September while underlying markets as represented by the MSCI World Index gained 0.07% over the same period. Asia focused strategies saw yet another month of decline as recovery in the US coupled with concerns over the US China trade war kept the pressure up on Asian markets with underlying Greater China mandates suffering steep losses. Across strategies, distressed debt, fixed income and arbitrage hedge funds led the table with gains of 1.84%, 0.70% and 0.29% respectively.
October 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index ended the month down 0.06%, trailing closely behind global equity markets as represented by the MSCI AC World Index (Local) which edged 0.07% higher in September. Roughly half of the hedge fund managers tracked by Eurekahedge managed to generate positive returns over the month. On a year-to-date basis, the Eurekahedge Hedge Fund Index was up 0.26% as of September 2018, with 11% of the constituent funds generating double-digit returns over the first three quarters of the year
October 2018 | Eurekahedge
Altinvestor Europe 2018 is Eurekahedge’s second European asset owners’ event and the fourth of its kind across Europe and APAC regions, delivering exclusive insights from family offices as well as institutional asset owners on exploring alternative assets and optimising portfolio returns. The event is aimed at facilitating a private environment for candid discussions between investors and to serve as a melting pot of ideas connecting Europe’s leading institutional investors under one roof.
October 2018 | Eurekahedge
North American hedge funds were up 3.39% as of August 2018 year-to-date, outperforming their peers focusing on other regions, owing to the robust economy of the United States which was supported by the Trump administration’s tax cut policy. The strong economy led the Federal Reserve to tighten their monetary policy by gradually increasing their short-term interest rates to contain the low unemployment rate, stabilise inflation, and avoid overheating the economy. The rate hikes made the US bond market attractive to investors due to the rising bond yields, causing a massive equity market selloff in early February this year. The North American equity markets have since recovered, boosted by strong corporate earnings season, which saw more than 80% of the large-cap companies comprising the S&P 500 index beating Q2 analyst estimates.
October 2018 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at October 2018. Find out more about North American 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.
October 2018 | Eurekahedge
Alain Groshens is the co-founder, CEO, Head of Portfolio Management and Responsible Officer at SystematicEdge. For the past 25 years, Alain has been directly in charge of multi-asset portfolio management and head of trading divisions for major European Investment Banks (Societe Generale, Commerzbank & Natixis), accountable for generating returns and managing risks. As Global Head of Trading, Alain was in charge of 50 traders across the globe, managing multi-asset portfolios totaling up to 30 billion euros of notional. Alain spent most of his career in Asia and was based in Paris, London, Tokyo and Hong Kong.
October 2018 | John Verwey and Amar Unadkat, Proskauer Rose LLP
On 29 March 2019, the UK is set to leave the EU (a process most commonly referred to as "Brexit"). The UK and EU are currently in negotiations to agree upon a transitional period which is proposed to run from 29 March 2019 through to 31 December 2020.
Under the terms of the proposed transitional agreement, the UK would continue to be treated as part of the EU's single market in financial services, meaning that UK and EU firms would continue to have access to their respective markets on current terms and firms will be able to trade on the same terms as now until the end of the transitional period. Financial services passporting rights would continue to apply, therefore EU firms operating in the UK, and UK firms operating in the EU, would be able to continue to undertake regulated investment activities, either by means of passporting rights or under other relevant EU frameworks.
October 2018 | Pamela V. Rothenberg and Mark Newberg, Womble Bond Dickison LLP
Opportunity Zones are a compelling and powerful new tool for investors, asset owners, asset managers and communities that can mobilise capital for economic development in underserved communities, yielding good job creation, affordable and workforce housing development, community improvement and economic growth.
October 2018 | Laure Mersch, Marc Meyers, Max Welbes and Thibaut Partsch, Loyens & Loeff
The CSSF issued on 23 August 2018 a new circular 18/698 regarding the authorisation and organisation of Luxembourg investment fund managers (the Circular). This Circular entered into force with immediate effect and replaced and superseded the CSSF circular 12/546
September 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index was up a flat 0.09% in August while underlying markets as represented by the MSCI World Index gained 1.06% over the same period. Asia focused strategies saw yet another month of decline as recovery in the US coupled with concerns over the US China trade war kept the pressure up on Asian markets with underlying Greater China mandates suffering steep losses. Across strategies, distressed debt, CTA/managed futures and relative value hedge funds led the table with gains of 1.52%, 1.05% and 0.58% respectively.
September 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index ended the month almost flat, gaining 0.09% with gains posted by North American mandated funds offset by losses suffered by managers focusing on Europe, Asia and Latin America. Roughly 28% of the hedge fund managers tracked by Eurekahedge managed to outperform the underlying global equity markets as represented by the MSCI AC World Index (Local) which gained 1.06% over the month. On a year-to-date basis, the Eurekahedge Hedge Fund Index was up 0.45% as of August 2018, with 10% of the constituent funds generating double-digit returns over the first eight months of the year.
September 2018 | Eurekahedge
Crypto-currency funds dominated the hedge fund performance league tables back in 2017, thanks largely in part to the gravity defying price of Bitcoin (BTC), Ethereum (ETH), and other major crypto-currencies. The Eurekahedge Crypto-Currency Hedge Fund Index returned 1708.50% throughout the year, outperforming the global hedge fund industry average performance by over two hundredfold. While opinions around the future of crypto-currency became increasingly polarized, the enviable price appreciation continued to attract actively managed funds investing in crypto-currencies.
September 2018 | Eurekahedge
The Eurekahedge Asian Hedge Fund Index was down 1.57% year-to-date, and ended up as the only major regional mandate within the Eurekahedge database that was in negative territory over the first seven months of 2018. Asian hedge funds traded under the pressure of the escalating US-China trade war. The United States president Donald Trump officially fired the first shot in the trade war by imposing a 25% tariff to US$34 billion of imported Chinese goods on July 6, 2018 in response to China’s alleged unfair trade practices. The move resulted in China’s retaliatory tariff of the same magnitude on the US agriculture products, which took effect on the same date. After the first tranche of the US and China trade tariffs, the US president proposed another 25% tariff on US$200 billion of imports and further escalated the trade friction between the two largest economies in the world. China’s two mainland stock exchanges continued to slump since the beginning of the year as the impact of the tari
September 2018 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at September 2018. 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.
September 2018 | Greg Heaton, Timothy Loh LLP
While retail funds must be authorized by the Securities and Futures Commission (“SFC”) before distribution in Hong Kong, the SFC has no authority to regulate private funds. Unable to touch these funds directly, the SFC has instead imposed new regulatory requirements on licensed asset managers, financial advisers and fund distributors, through amendments to the Fund Manager Code of Conduct (“FMCC”) and the Code of Conduct for Persons Licensed by or Registered with the SFC (“Code of Conduct”).
August 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.41% in July while underlying markets as represented by the MSCI World Index gained 2.59% over the same period. Regional mandates with the exception of underlying Asia focused hedge funds ended the month in the green. Asia focused strategies saw yet another month of decline as recovery in the US coupled with concerns over the US China trade war kept the pressure up on Asian markets. Across strategies, distressed debt and fixed income hedge funds led the table with gains of 0.76% each whilst CTA/managed futures hedge funds posted yet another month of losses.
August 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index ended the month of July up 0.41% as North American and European equity markets enjoyed the boost from strong second quarter earnings season, which somewhat mitigated losses incurred by the global trade friction. Roughly 13% of hedge fund managers tracked by Eurekahedge managed to outperform the underlying global equity markets as represented by the MSCI AC World Index (Local) which gained 2.59% over the month. On a year-to-date basis, the Eurekahedge Hedge Fund Index was up 0.43% as of July 2018.
August 2018 | Eurekahedge
Despite the escalation of the ongoing trade conflict between the US and China, trade finance hedge funds successfully traded their way around this challenge over the past few months. The Eurekahedge Trade Finance Hedge Fund Index has not spent a single month in the red since the year started, and has returned 3.51% as of July 2018 year-to-date, ahead of hedge fund managers utilising fixed income strategies as represented by the Eurekahedge Fixed Income Hedge Fund Index which gained 1.16% over the same period. The custom index, an equal weighted index composite of 26 unique trade finance hedge funds tracks US$3.7 billion in assets under management (AUM) as of July 2018, a figure which has surged more than 50% since the end of 2016.
August 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.02% as of June 2018 year-to-date, showing its worst 1H performance since 1999. The global economy is at risk due to the escalating tension of trade war between the US and China, which started in January 2018 when the US president Donald Trump imposed a tariff on imported solar panels and washing machines. The tension arose when president Trump imposed further tariffs on US$50 billion’s worth of Chinese goods and threatened to implement the same tariffs on an additional US$200 billion of goods imported from the world’s second largest economy. According to the International Monetary Fund chief economist Maurice Obstfeld, the ongoing trade war is a near-term threat to global growth.
August 2018 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at August 2018. Find out more about global 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.
July 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.34% in June while underlying markets as represented by the MSCI World Index declined 0.21% over the same period. Regional mandates across the board with the exception of Australia/New Zealand mandated hedge funds ended the month in the red, with emerging markets, in particular Asia-focused strategies seeing the largest declines. Across strategies, event driven hedge funds led the table with gains of 1.17% followed by relative value hedge funds which were up 0.66%.
July 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index slumped 0.34% during the month of June, as managers struggled under the volatile market situation driven by the escalating US-China tariff spat over the month. The transitory ceasefire in the trade war was effectively ended when the White House announced a 25% tariff on US$50 billion of Chinese exports on June 15, which prompted China to respond in kind. Roughly 46% of the hedge fund managers tracked by Eurekahedge managed to outperform the underlying global equity markets as represented by the MSCI AC World Index (Local) which declined 0.21% over the month. The Eurekahedge Hedge Fund Index wrapped the first half of 2018 with a positive yet unremarkable return of 0.08% after spending three months in the red, a far cry from the 3.36% gain posted by the index over the first half of 2017.
July 2018 | Eurekahedge
Investors are increasingly beginning to incorporate ethical considerations into their investment decisions, a development which has given rise to the ESG framework over the years. Despite the implementation challenges which arise when screening investments against acceptable environmental, social and corporate governance themes, the trend towards a more conscientious approach to investment is here to stay, especially from the perspective of large institutional investors. Fund managers, for both actively and passively managed investment vehicles are balancing their quest for superior returns with the need to meet investor demand for responsible investing. Further, an understanding that such an approach to investment can translate into ‘ESG induced alpha’ for managers is further helping the cause of ethically guided investing. This article looks at the performance of funds, both long-only absolute return vehicles and hedge funds, with an active ESG investment framework and how they have
July 2018 | Eurekahedge
The Eurekahedge European Hedge Fund Index gained 0.56% in the first half of 2018, ahead of their global peers’ performance as indicated by the Eurekahedge Hedge Fund Index which was up 0.39% over the same period. European hedge funds returned 7.10% in 2017 on the back of the underlying equity markets’ rally throughout the year, supported by strengthening oil and commodity prices, combined with the unwinding of geopolitical risks within the region. Going into 2018, market volatilities returned and weighed down on the alternative investment industry’s performance. Regional risk outlook seemed to be tilted downward as trade concerns over the steel and aluminium tariffs imposed by the Trump administration and the uncertainties looming over Brexit deals may pose as headwinds against the European economies for the upcoming months.
July 2018 | Eurekahedge
Absolute return funds ended the year 2017 with an impressive gain of 20.44%, beating their hedge fund and fund of hedge fund peers which returned 8.19% and 7.18% respectively, by riding on the global equity market rally which propelled the MSCI AC World IMI Index (Local) to rise 17.51% throughout the year. However, market volatilities struck back in the first half of 2018, and absolute return fund managers were down 0.39% as of May 2018 year-to-date, trailing behind hedge fund managers who returned 0.39% over the same period, owing to the downside protection provided by their hedging strategies.
July 2018 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at July 2018. Find out more about European 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.
July 2018 | Mark V. Nuccio and Gideon Blatt, Ropes & Gray
On May 30, 2018, the Federal Reserve Board issued a notice of proposed rulemaking and asked for comment on a proposed rule to simplify and tailor compliance requirements relating to the regulation implementing section 13 (commonly known as the “Volcker Rule”) of the Bank Holding Company Act (“BHC Act”) (the “Proposal”). The Proposal was developed jointly with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Commodity Futures Trading Commission (together, the “Agencies”).
June 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.33% in May while underlying markets as represented by the MSCI World Index were up 0.84% over the same period. Among regional mandates, North American managers posted the best gains, up 1.43% during the month followed by Asia ex-Japan hedge funds which saw gains of 1.26%. Across strategies, event driven hedge funds led the table with gains of 1.69% followed by long/short equities hedge funds which were up 1.09%.
June 2018 | Eurekahedge
Hedge fund managers successfully remained in the positive territory over the month of May, with the Eurekahedge Hedge Fund Index up 0.33% over the month, supported by the recovery of the global equity markets as represented by the MSCI AC World Index All Cap (Local) which gained 0.84%. Concerns over the trade war between the US and China, as well as geopolitical risks over the Korean peninsula dwindled nearing the end of the month, as the involved parties exhibited amiable dispositions. The armistice in the middle of the US-China tariff war and the results of the Trump-Kim summit held in Singapore in early June might provide a much needed relief for the East Asian equity markets which have been struggling since the start of the year.
June 2018 | Eurekahedge
The Eurekahedge ILS Advisers Index ended 2017 down 5.60%, breaking the streak of positive returns that lasted for five years, owing to the devastating losses incurred during the Atlantic hurricane season of 2017. The index, which tracks the performance of 34 ILS hedge funds with predominantly non-life risk exposure, declined by 8.61% in the month of September 2017 alone, as the extent of damage caused by hurricane Harvey and hurricane Irma started to come into light. Going into 2018, the index barely budged from its position as at the end of 2017, as it returned 0.07% over the first four months of 2018. Performance across fund managers were mixed, with strong primary cat bond market activities and healthy net inflows providing supports for them, while increased estimations on the losses induced by last year’s Atlantic hurricanes and California wildfire counteracted the gains. However, above-average activity forecasts for the 2018 Atlantic hurricane season may put pressure on ILS fund m
May 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.55% in April while underlying markets as represented by the MSCI World Index was up 1.18% over the same period. Among regional mandates, European managers posted the best gains, up 0.78% during the month followed by North American hedge funds which saw gains of 0.27%. Across strategies, distressed debt hedge funds led the table with gains of 1.12% followed by macro hedge funds with 0.84%.
May 2018 | Eurekahedge
Hedge funds successfully traded their way around an overwhelming month in April and were up 0.55% while underlying markets as represented by the MSCI World Index (Local) gained 1.18% during the month. Investors' risk appetite improved in April amid waning concerns over trade war, bolstered by the ‘soft’ tone of Xi Jinping in response to US trade sanctions. Developed markets outperformed their emerging market counterparts during the month, as the latter still remained rather volatile with the region’s equity markets posting a slightly negative return during the month on the back of a strengthening US dollar and concerns over US-China trade spat. Equity markets rebounded in April with strength led by European and North American markets with mixed to flat performance across Asian equity markets. Economic data for Q1 2018 was largely encouraging albeit recovery was at a slower pace with indicators pointing towards global economic expansion. Meanwhile, 58% of the underlying constituent fund
May 2018 | Eurekahedge
Greater China equity hedge funds ended 2017 with their best annual performance on record since 2009, supported by the remarkable rally of the Chinese equity markets throughout the year. The Eurekahedge Greater China Long Short Equities Hedge Fund Index which tracks 59 Greater China focused hedge funds utilising equity strategies posted a 31.87% gain in 2017, outperforming equity hedge fund managers from the broader region, as represented by the 19.73% return generated by the Eurekahedge Asia Long Short Equities Hedge Fund Index over the same period.
May 2018 | Eurekahedge
The Eurekahedge Latin American Hedge Fund Index was up 5.06% as of March 2018 year-to-date, narrowly outperforming the underlying equity market as represented by the MSCI EM Latin America IMI Index which gained 4.76% over the same period. Latin American hedge fund managers continued to ride on their momentum from last year’s rally despite the difficult trading situations in the first quarter of 2018 which led to the poor performance of the global hedge fund managers who lost 0.30% on average in the quarter. Robust labour market and strengthening private consumption, combined with healthy commodity exports are expected to provide support for the region’s economies, while on the other hand protectionist policies in the United States and political uncertainties induced by the upcoming elections in Brazil, Colombia and Venezuela are among the major downside risks for investors looking into Latin America.
May 2018 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at May 2018. Find out more about Latin American 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.
May 2018 | Nikos Buxeda, Manuel López-Zambrana, Camille Alvarez and Juan Carlos Feliciano, DLA Piper
Ten years ago, private equity funds and hedge funds were practically nonexistent in Puerto Rico. This has changed dramatically as the result of two main developments: the enactment of Act 185-2014, known as the Private Equity Funds Act and (ii) the influx of financial industry professionals moving to the island to take advantage of the tax benefits available under Acts 20 and 22 (for a more detailed discussion of those benefits, please see Puerto Rico's Act 20 and Act 22 – key tax benefits).
April 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index declined 0.54% in March while underlying markets as represented by the MSCI World Index declined 2.21% over the same period. Among regional mandates, Latin American managers posted the best gains, up 0.81% while all other regional mandates languished into negative territory. Across strategies, distressed debt hedge funds led the table with gains of 5.74% followed by relative value hedge funds which were up 0.31%.
April 2018 | Eurekahedge
Hedge funds registered their second consecutive month of losses since the start of the year, with the Eurekahedge Hedge Fund Index declining 0.54% in March, while still outperforming the MSCI World Index which ended the month down 2.21%. The average return of the global hedge fund was pulled into negative territory in March as choppy trading conditions across commodities, and weaker global equity performance continued to affect the trading scene. March was marked by investors’ concerns over the US and China trade war which made headlines throughout the month and negatively affected the global equity markets, most of which ended the month in the red. As of Q1 2018, hedge funds are down 0.13%, ahead of underlying markets as the MSCI World Index posted losses of 2.24%. Close to 55% of managers were in positive territory, and roughly 6% posted year-to-date returns in excess of 10% over the first quarter. Latin American managers led among regional mandates this month with their 0.81% gain,
April 2018 | Eurekahedge
Indian hedge funds outperformed their global peers by a large margin in 2017, riding on the back of the Indian equity market’s exceptional performance over the year. The Eurekahedge India Hedge Fund Index generated 28.96% return over 2017, dwarfing the 8.25% 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 2013. 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.
April 2018 | Eurekahedge
Asian hedge funds ended 2017 with their strongest performance recorded since 2009, as reflected by the 16.94% gain posted by the Eurekahedge Asian Hedge Fund Index, which is more than double the 8.25% gain generated by their global peers represented by the Eurekahedge Hedge Fund Index over 2017. Incredible stock market rallies across the continent, especially in Greater China and India, combined with strong economic growth have greatly contributed to the performance of the hedge fund managers with exposure toward the region.
April 2018 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at April 2018. 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.
March 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index declined 1.62% in February outperforming underlying markets as represented by the MSCI World Index which fell 3.68% over the same period. Among regional mandates, Latin American managers led the table, up 0.66% during the month while other regional mandated funds languished into negative territory. Across strategies, distressed debt hedge funds led the table with gains of 1.32% followed by arbitrage hedge funds which were up 0.53%.
March 2018 | Eurekahedge
Global markets underwent a sharp and speedy correction in February which saw equity markets post steep losses as investors prepared for a faster than expected interest rate hike in the US. The average return of the global hedge fund industry was pulled into negative territory as markets experienced sharp reversals, with trend following CTA/managed futures and long/short equities strategies lagging behind the pack. Hedge funds registered their first monthly loss of the year with the Eurekahedge Hedge Fund Index down 1.62% in February as volatility levels spiked across the board and unravelled the volatility risk premium trade. Despite steep losses during the month, hedge funds have protected on the downside and managed to outperform underlying markets as the MSCI AC World Index (Local) declined 3.68% in February.
March 2018 | Eurekahedge
This piece looks at the performance of CTA/managed futures hedge funds and its various sub-groups which have come under pressure during the difficult market environment of February. We conclude by looking at the returns for the industry heavy weight systematic macro hedge funds overseeing assets in excess of US$1 billion which recorded steep monthly losses in February declining 4.77%. In contrast to popular news insinuating that the recent market melt-down was the doing of a handful of AI hedge fund managers which recorded their worst monthly loss on record, it seems that the major casualties lie somewhere elsewhere.
March 2018 | Eurekahedge
The North American hedge fund industry grew by US$136.4 billion over 2017, owing to the strong performance of hedge fund managers, as indicated by the 8.60% gain posted by the Eurekahedge North American Hedge Fund Index over the year, which is its strongest performance since 2013. Thanks to the strong equity market performance around the globe, hedge funds with high long exposure to equities enjoyed the benefits of the record breaking equity market rallies. Despite falling behind their peers from Latin America and Asia, North American hedge funds kicked off 2018 with a decent performance, gaining 1.54% in January. Long/short equities funds topped the chart among strategic mandates with their 2.04% gain over the first month of 2018.
March 2018 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at March 2018. Find out more about North American 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.
March 2018 | Joanne Huckle, Ogier
It has become an established industry norm to see independent directors appointed to the boards of offshore hedge funds. It is no longer a 'check box exercise' to confirm independent directors have been appointed. Institutional investors are increasingly concerned about the composition of the board, the experience and skill set of its members and the day to day relationship between both the board members themselves and the board and the investment manager.
February 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 2.20% in January while underlying markets as represented by the MSCI World Index gained 3.78% over the same period. Among regional mandates, Latin American managers led the table, up 4.47% during the month followed by Asia ex-Japan managers who were up 3.72%. Across strategies, CTA/managed futures hedge funds led the table with gains of 3.54% followed by long/short equities hedge funds which were up 2.37%.
February 2018 | Eurekahedge
January was a happy start to the year for hedge funds, with the Eurekahedge Hedge Fund Index up 2.20% in January. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 3.78% over the same period. As the global risk on mode continues into January, trend following managers were positioned in good stead with holdings into equities and oil among performance contributors.
February 2018 | Eurekahedge
This piece revisits the performance of hedge funds that utilise artificial intelligence and machine learning theory in their trading process, focusing on the overall risk-return profile of artificial intelligence (AI) hedge funds as captured by the Eurekahedge AI Hedge Fund Index in comparison to traditional quants, equity-hedge strategies and the average global hedge fund.
February 2018 | Eurekahedge
The Islamic finance industry is a niche market predominantly serving the needs of the world’s Muslim population. Products marketed under the umbrella of Islamic finance comply with a different investment philosophy as opposed to traditional investment philosophy which the rest of the world are familiar with.
February 2018 | Eurekahedge
Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, as UCITS embodied by strong regulation resulting to a high level of investors protection with certain restrictions such as liquidity of the underlying assets and leverage caps to provide added transparency to investors.
February 2018 | Eurekahedge
Eurekahedge’s UCITS hedge funds infographic sums up the industry as at February 2018. Find out more about UCITS 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.
January 2018 | Eurekahedge
Hedge funds edged higher in the final month of the year, with the Eurekahedge Hedge Fund Index gaining 0.86% in December while underlying markets as represented by the MSCI World Index was up 1.19% over the same period. Among regional mandates, Latin American managers led the table, up 2.50% during the month followed by Asia ex-Japan managers who were up 1.41%. Across strategies, event driven hedge funds led the table in December with gains of 1.57% followed by multi-strategy hedge funds which were up 1.31%.
January 2018 | Eurekahedge
2017 ended positively with much pomp and was a strong year for global markets. Hedge funds closed the final month of the year in positive territory with the Eurekahedge Hedge Fund Index up 0.86% in December while the MSCI World Index finished the month up 1.19%. For 2017 as a whole, hedge funds were up 8.25%, while underlying markets as represented by the MSCI World Index returned 17.55% over the same period.
January 2018 | Eurekahedge
Altinvestor Europe 2017 took off with a powerful opening presentation from a highly experienced pension executive presenting on how pension funds could secure long term success through collaboration with peers and asset managers and taking a more active and innovative approach to pension fund investment management.
January 2018 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 7.32% as of November 2017 year-to-date, and is on track to post 12 consecutive months of positive gains in an annual year for the first time since 1999. Total assets managed by the global hedge fund industry currently stands at US$2413.0 billion, up US$188.2 billion over the year, which is the highest annual growth recorded since the end of 2013.
January 2018 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at January 2018. Find out more about global 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.
December 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.32% in November while underlying markets as represented by the MSCI World Index was up 1.16% over the same period. Among regional mandates, Asia ex-Japan managers posted the best gains, up 1.53% during the month followed by Japanese and North American hedge funds seeing gains of 1.06% and 0.86% respectively. Across strategies, relative value hedge funds led the table with returns of 0.89% followed by long/short equities and multi-strategy hedge funds which were up 0.75% and 0.22% respectively, the only two strategies who posted 12 consecutive months of gains in 2017 as global equity markets continue to rally throughout the year.
December 2017 | Eurekahedge
Hedge funds were up 0.32% during the month of November, with 2017 year-to-date returns coming in at 7.27%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 1.16% in November with its 2017 year-to-date returns coming in at 16.17%. Roughly 76% of underlying constituent funds for the Eurekahedge Hedge Fund Index were in positive territory this month, with majority of them being long/short equities mandated. Equity markets continued to perform well this month with strength led by US and emerging Asian markets. Encouraging macroeconomic data from US and Japan buoyed market sentiment with growth in manufacturing activity adding to much optimism.
December 2017 | Eurekahedge
Early estimates put the Eurekahedge Hedge Fund Index return at 7.81% by the end of 2017, and hedge funds are on track to post twelve consecutive positive months in a year for the first time since 1999.
December 2017 | Eurekahedge
The Eurekahedge European Hedge Fund Index gained 6.91% in 2017 year-to-date, slightly behind their global peers’ performance as indicated by the Eurekahedge Hedge Fund Index which gained 6.93% over the same period. Hedge fund managers have been able to capture a portion of the underlying market’s rally as European economies recover over the year. Strengthening oil and commodity prices, combined with the unwinding of geopolitical risks will continue to support the region’s growth in 2018. The hedge fund industry is expected to benefit from the strong market performance of the region over the next year.
December 2017 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2017. Find out more about European 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.
November 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.28% in October while underlying markets as represented by the MSCI World Index gained 2.56% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 2.82% during the month followed by Japanese managers who were up 1.77%. Across strategies, CTA/managed futures hedge funds led the table with gains of 2.66% followed by macro hedge funds which were up 1.72%.
November 2017 | Eurekahedge
Hedge funds were up 1.28% during the month of October, with 2017 year-to-date returns coming in at 6.99%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.56% in October with its 2017 year-to-date returns at 14.84%. Roughly 77% of the underlying constituent hedge funds for the Eurekahedge Hedge Fund Index were in positive territory this month thanks to a broad-based rally in global equity markets and an improving investor risk appetite. Asia ex-Japan managers led the performance among regional mandates this month, up 2.82%, while CTA/managed futures managers topped the table across strategies gaining 2.66% over the same period.
November 2017 | Eurekahedge
Crypto-currency funds continue to dominate hedge fund performance league tables’ thanks largely in part to the gravity defying price of bitcoins. In fact since we first published an index tracking the performance of crypto-currency investing hedge funds earlier this year, the price of bitcoin, the most liquid and the shiniest of all crypto-currencies has almost quadrupled. While opinions around the future of crypto-currency have become increasingly polarized, the enviable price appreciation continues to attract actively managed funds towards investments in crypto-currencies.
November 2017 | Eurekahedge
The Eurekahedge Latin American Hedge Funds Index gained 14.16% as of September 2017 year-to-date, while MSCI EM Latin America IMI Index posted 18.73% over the same period. Latin American hedge funds still outperformed their European and North American counterparts by a sizeable margin and remain attractive to investors in 2017, as indicated by the 2017 year-to-date investor inflows which stand just above the US$6 billion mark, bringing the cumulative AUM to match the previous 2013 year end peak at US$60.3 billion.
November 2017 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at November 2017. Find out more about Latin American 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.
November 2017 | Eurekahedge
Niklaus Hilti is the Chief Executive Officer and Chief Investment Officer of Credit Suisse Insurance Linked Strategies Ltd., which manages a number of funds focused on insurance linked investments.
October 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.42% in September1 while underlying markets as represented by the MSCI World Index2 were up 2.17% over the same period. Among regional mandates, Japanese managers posted the best gains with 1.72% during the month followed by Asia ex-Japan and Latin American hedge funds with returns of 1.25% and 1.15% respectively. Across strategies, long/short equity hedge funds led the table with gains of 1.46% followed by event driven hedge funds, up 0.80%.
October 2017 | Eurekahedge
After 5 consecutive years of positive returns, hedge funds with exposure to catastrophe bonds or Cat bonds for short, are on track to post their first year of losses as the full extent of damages from Hurricane Harvey, Irma and Maria come to light. An index of such funds tracked by Eurekahedge who explicitly allocate to insurance linked investments and have at least 70% of their portfolio invested in non-life risk – the Eurekahedge ILS Advisers Hedge Fund Index was down 0.33% in August and 5.46% in September, bringing the year-to-date return into negative territory with a loss of 3.69%. This comes after ILS hedge funds delivered compound returns of 15.60% versus 12.21% for the average hedge fund in the three year period ending December 2016.
October 2017 | Eurekahedge
Assets for the North American hedge fund industry grew by US$68.5 billion through 2017 September year-to-date, with the majority of the growth being contributed by a resurgence in investor inflows into the industry. Managers posted performance based gains of US$22.0 billion in 2017, while the Eurekahedge North American Hedge Fund Index was up 3.23% over the same period. Event Driven mandated hedge funds topped the performance table across strategic mandates returning 4.56% in 2017 thus far. Among geographic mandates, fund managers with exposure to Asia Pacific posted the best 2017 year-to-date performance by gaining 13.83%.
October 2017 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at October 2017. Find out more about North American 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.
October 2017 | Eurekahedge
Credit Suisse Insurance Linked Strategies (CSILS) team has one of the longest track records in the ILS space dating back to 2003 when members of our team first managed ILS funds at Bank Leu, a former Credit Suisse Group subsidiary.
October 2017 | Eurekahedge
HSBC Global Asset Management had approximately $10bn of Structured Credit / ABS under management. The team is one of the largest in the industry, with 14 dedicated specialists whose sole focus is structured credit research and client investment.
September 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.73% in August while underlying markets as represented by the MSCI World Index, were up 0.15% over the same period. Among regional mandates, Latin American managers led the table, up 3.26% during the month followed by Asia ex-Japan managers who were up 1.50%. Across strategies, CTA/managed futures hedge funds led the table with gains of 1.24% followed by macro hedge funds which were up 1.04%.
September 2017 | Eurekahedge
The Asian hedge fund industry has rebounded strongly in 2017, with managers running Asian mandates on track to outperform their global peers – Asia mandated hedge funds are up 9.86% relative to gains of 4.42% posted by the average global hedge fund. Investor appetite for the region has also picked up, with US$5.6 billion of net investor flows during the year as managers recorded US$6.7 billion in performance-based gains. Underlying Asia ex-Japan mandates have posted stellar returns, up 12.48% year-to-date helped by strong performance of underlying Greater China and India focused managers which are up 17.39% and 19.69% respectively for the year. Japanese hedge funds have also posted strong gains, and led on a year-to-date basis among developed market mandates with gains of 5.93%, while their North American and European peers gained 3.30% and 4.36% respectively.
September 2017 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at September 2017. 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.
September 2017 | Eurekahedge
November 2016, what many thought was unthinkable became a reality when Donald Trump assumed power in the United States. His unpredictability and outspokenness had already spooked markets in the lead up to the election, but what has happened since has been quite remarkable in its own right. Markets, which once feared the idea of a Trump presidency embraced it whole-heartedly, and what President Trump had once called ‘a big, fat, ugly bubble’ got a new lease of life. The rhetoric was toned down and the handshakes were tempered as the prospect of a renewed fiscal stimulus coupled with economic de-regulation set about trying to woo markets. While little has materialized save a deadlock on Capitol Hill, markets have risen to new highs.
August 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index grew 0.88% in July while underlying markets, as represented by the MSCI World Index, gained 1.64% over the same period. Among regional mandates, Latin American managers led the table, up 3.68% during the month followed by Asia ex-Japan managers who were up 2.45%. Across strategies, long/short equities hedge funds led the table with gains of 1.15% followed by CTA/managed futures hedge funds which were up 1.08%.
August 2017 | Eurekahedge
Investors are increasingly beginning to incorporate ethical considerations into their investment decisions, a development which has given rise to the environmental, social, governance (ESG) framework over the years. Despite the implementation challenges which arise when screening investments against acceptable environmental, social and corporate governance themes, the trend towards a more conscientious approach to investment is here to stay, especially from the perspective of large institutional investors.
August 2017 | Eurekahedge
The global hedge fund industry is on track to post a solid recovery in 2017as underlying markets trend upwards against the backdrop of subdued volatility in asset prices. The Trump presidency which was expected to spook market sentiment has been surprisingly constrained so far with regards to delivering on the campaign agenda, in particular policies pertaining to global trade. Rather, expectations of a fiscal expansion in the US lend support to markets early during the year while his first tour as President of the United States helped calm nerves overseas, barring the odd-handshakes and other presidential antics. Risk appetite generally improved during the year, with equity long bias strategies posting double digit gains whilst returns for macro and systematic managed futures strategies languished in a low volatility regime.
August 2017 | Eurekahedge
Emerging market mandated hedge funds have delivered exceptionally strong gains this year – the asset weighted US dollar denominated Mizuho-Eurekahedge Emerging Market Index is up 7.59% for the year, with underlying equity long/short hedge funds for the index gaining 9.75% in the seven months through July. Hedge funds running dedicated exposure to India, China and Latin America have all posted double-digit gains year-to-date and have been the key contributors to the stellar returns posted by emerging market mandated hedge funds.
August 2017 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at August 2017. Find out more about global 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.
July 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index down 0.07% in June while underlying markets as represented by the MSCI World Index gained 0.18% over the same period. Among regional mandates, Asia ex-Japan managers led the table with growth of 1.29% during the month followed by Japanese managers who were up 1.05%. Across strategies, event driven hedge funds led the table with gains of 0.79% followed by relative value hedge funds which were up 0.61%.
July 2017 | Eurekahedge
A revival appears to be underway for China investing mandates in 2017 following disappointing returns last year. The recent decision by MSCI to include Chinese A Shares in its broader Emerging Market Indices is likely to support this trend, though exposure through long-only type vehicles to underlying markets could take investors for a ride given the inherent volatility. This piece looks at the performance of China A-Share investing hedge funds and how they have managed to ride the volatility in underlying markets over the years.
July 2017 | Eurekahedge
The European hedge fund industry has been gaining since the start of the year despite political uncertainty in the Eurozone area. Investor allocations into the industry stood at US$3.5 billion over the first five months of 2017, though the first two months of the year show investors’ redemptions to the tune of US$2.8 billion as concern arose over the outcome of the French presidential election results.
July 2017 | Eurekahedge
Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, as UCITS embodied by strong regulation resulting to a high level of investors protection with certain restrictions such liquidity of the underlying assets and leverage caps to provide added transparency to investors.
July 2017 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at July 2017. Find out more about European 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.
July 2017 | Eurekahedge
Eurekahedge’s UCITS hedge funds infographic sums up the industry as at July 2017. Find out more about Latin American 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.
June 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.33% in May while underlying markets as represented by the MSCI World Index gained 1.09% over the same period. Among regional mandates, Japanese managers led the table, up 1.58% during the month followed by Asia ex-Japan managers who were up 0.93%. Across strategies, event driven hedge funds led the table with gains of 0.71% followed by long/short equities hedge funds with gains of 0.49%.
June 2017 | Eurekahedge
Since 2013, a new breed of actively managed crypto-currency alternative funds has been coming to the fore. Initially starting off with dedicated exposure to bitcoins, these funds have now diversified across the breadth of crypto-currencies and consistently rank at the top of performance tables thanks to the skyrocketing price of crypto-currencies over the past few years.
June 2017 | Eurekahedge
The Eurekahedge Latin American Hedge Fund Index was up 7.10% in April year-to-date underperforming underlying markets as represented by the MSCI Latin American Index which were up 8.03% over the same period. The strength of Latin American hedge fund industry has been well-supported by the recovery of commodity prices during the first four months of the year, with the Ibovespa Index up a modest of 0.65%.
June 2017 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at June 2017. Find out more about Latin American 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.
May 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.64% in April while underlying markets as represented by the MSCI World Index gained 1.17% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 1.28% during the month followed by European managers who were up 1.10%. Across strategies, event driven hedge funds led the table with gains of 1.44% followed by long/short equities hedge funds which were up 1.05%.
May 2017 | Eurekahedge
Corporate events such as mergers and acquisitions (M&A) and company spinoffs provide opportunities for merger arbitrage hedge funds to capitalise on pricing inefficiencies prior to the completion of a transaction. Before acquisition, the price of the share of a target company is usually traded at a discounted price, creating a potential opportunity for merger arbitrageurs to reap gains once the transaction is complete. However, much of the opportunities within the merger arbitrage space lies in the health of M&A activity as well as other factors which would motivate (or de-motivate) the successful transaction of an M&A deal. For instance, the Pfizer/Allergan M&A deal was threatened by US regulatory challenges and this led to the abandonment of the deal. Other than regulatory challenges, the outlook of the global economy as well as business sentiments play an integral role in sustaining the appetite for corporate activity by conglomerates.
May 2017 | Eurekahedge
Eurekahedge’s global funds of hedge funds infographic sums up the industry as at May 2017. Find out more about Global funds of 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.
May 2017 | Eurekahedge
Isaac Lieberman founded Aston Capital Management as a quantitative hedge fund in November 2013. As a veteran trader of proprietary quantitative strategies, Isaac has more than 20 years of experience trading in global FX and fixed income markets. Prior to founding ACM, Isaac was Managing Director at J.P. Morgan where he was the Head of Algorithmic Trading and the Head of Electronic FX Options Trading. Before joining J.P Morgan in 2008, Isaac was Head of the FX and Fixed Income division in the Principal Strategies Group at Bear Stearns where he worked from 1996.
April 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.34% in March while underlying markets as represented by the MSCI World Index gained 0.79% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 2.02% during the month followed by European managers who were up 0.73%. Across strategies, long/short equities hedge funds led the table with gains of 1.06% followed by event driven hedge funds which were up 0.47%.
April 2017 | Eurekahedge
The rise of computer-driven strategies in the hedge fund sphere has caught considerable interest from the investment community over recent years. These quantitative hedge funds incorporate automated trading strategies, enabling them to capitalise on price discrepancies in the markets through executing trade positions within a very short span of time. While these systematic hedge funds have been employing methods of technical analysis into their trading strategies, sentiment analysis is also an up and coming feature in investment decisions. Text-mining data collected from various sources could be an indicator of ground sentiment during key market events, which can then be used as inputs in trading models or for risk control.
April 2017 | Eurekahedge
The hedge fund industry in Asia witnessed a difficult 2016 with investor redemptions a main contributor to the lethargy in asset base. Investors redeemed US$3.4 billion during the course of the year, with modest performance-based gains of US$1.6 billion recorded. Indeed, hedge funds globally have had a challenging year with strong redemption pressure from investors, and Asia as a whole was not isolated from this outlook.
April 2017 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at April 2017. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size, head office locations and the best and worst performances of the year.
April 2017 | Eurekahedge
The Classic Car Fund was launched in September 2012, driven both by a passion for cars and for uncorrelated alternative assets. The philosophy of The Classic Car Fund is simple; buy well-selected cars at attractive prices that have had a thorough evaluation by an independent expert, and sell them later at a profit. The fund is not focused on any specific make or production year, but emphasis is clearly on sports cars from various periods. Holding times vary vastly but the fund does not fall in love with its investments. Some cars have enabled the fund to realise a healthy double-digit profit in as little as three months, while others will remain in the fund for up to a few years. Also, and perhaps of more interest for most, against a small fee fund investors may borrow and drive some cars in the fund over a day or a weekend. If anyone asks you can truthfully say it is your car, as it is part of the fund you are an owner of.
April 2017 | Eurekahedge
Kevin Ellis brings more than 30 years of financial, administrative and operations experience to the Firm. Previously, Mr. Ellis was the COO and principal of FISCO Appreciation Management LLC. He also served as a Founding Principal, Managing Director and COO at Labyrinth Group, LLC, an investment management firm utilising structured securities. Prior to that, he was Manager of Corporate Development at Arthur Anderson, LLP, where he focused on finance, mergers and acquisitions. Earlier in his career, he served as Vice President of Business Planning at SUPERVALU, Inc. Mr. Ellis is a graduate of Minnesota State University-Mankato BA Finance and earned a Juris Doctorate from William Mitchell College of Law and was admitted to the bar in Minnesota in 1983.
March 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.97% in February while underlying markets as represented by the MSCI World Index gained 2.72% over the same period. Among regional mandates, Latin American managers led the table, up 2.75% during the month followed by Asia ex-Japan managers with 1.43%. Across strategies, distressed debt hedge funds were in the lead with 1.34% gains followed by event driven hedge funds with 1.26%.
March 2017 | Eurekahedge
Activist hedge funds, a sub-strategy of event driven hedge funds, deploy shareholder activism as a key cornerstone of their investment strategy and have closer interactions with management of the companies which they invest into. Cultural differences also play a part in the adopted style of activism with Western activist hedge funds pursuing a dynamic approach, while their Asian counterparts adopt a more engagement-styled activism. This special feature takes a quick look at activist hedge funds, which have markedly outperformed their global hedge fund peers in 2016.
March 2017 | Eurekahedge
Assets for the North American hedge fund industry grew by US$19.1 billion for annual year 2016, with strength led by manager performance as opposed to investor interest. Managers posted performance-based gains of US$34.0 billion in 2016, with the Eurekahedge North American Hedge Fund Index was up 7.77% over the same period, outperforming regional peers. Event driven mandated hedge funds led performance across strategic mandates, up 18.19% in 2016 followed by distressed debt and multi-strategy hedge funds which gained 12.86% and 11.17% respectively.
March 2017 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at March 2017. Find out more about North American 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.
March 2017 | Eurekahedge
Founded in 1999, Pinpoint is an Asia-based investment management firm that serves institutional investors, pension funds, private banks, fund of funds, family offices and high net worth individuals. Pinpoint Asset Management Limited was incorporated in Hong Kong on 4 Jun 2010 and regulated by the Hong Kong Securities Futures Commission for Type 9 (asset management) activities.
February 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.87% in January while underlying markets as represented by the MSCI World Index gained 1.49% over the same period. Among regional mandates, Latin American managers led the table, up 3.73% during the month followed by Asia ex-Japan managers who increased by 1.93%. Across strategies, event driven hedge funds led the table with gains of 2.02% followed by long/short equities hedge funds which increased by 1.65%.
February 2017 | Eurekahedge
Equity focused hedge fund strategies have seen their assets under management (AUM) grow from US$460.2 billion since end-2009 to US$778.0 billion as of January 2017 through a combination of performance-based gains and investor allocations over the years. Having recorded six consecutive years of asset growth between 2010 to 2015, long/short equity hedge fund AUM contracted for the first time in 2016, declining by 2.56% on the back of steep investor redemptions totalling US$29.1 billion. Performance-based gains were the lowest on record in the last five years following losses in 2011. While 2017 has started on a positive note, with assets for long/short equity hedge funds approaching the US$800 billion mark, the year holds much uncertainty in store.
February 2017 | Eurekahedge
Eurekahedge’s long-only absolute return funds infographic sums up the industry as at February 2017. Find out more about long-only absolute return 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.
February 2017 | Eurekahedge
The Islamic finance industry is a niche market predominantly serving the needs of the world’s Muslim population. Products marketed under the umbrella of Islamic finance comply with a different investment philosophy as opposed to traditional investment philosophy which the rest of the world are familiar with. Under a Shariah-compliant framework, transactions which are considered to be unethical under Islamic law are prohibited and instead, fund managers invest in products which are compliant with Islamic guidelines. Islamic financial products are accessible to all investors, some of whom choose to allocate into Islamic funds for purposes of portfolio diversification or their preference in investing in products which deemed as socially responsible. In recent years, Islamic finance has been catching on with traditional finance institutions as international banks have expanded into providing Islamic finance services. As the use of derivatives, options and futures are deemed to be speculati
February 2017 | Eurekahedge
Maciej Wisniewski is the Founder and Fund Manager of Macromoney and has full oversight of all company operations. Maciej has 20 years of experience in investments management and in successfully setting up investment funds.
January 2017 | Eurekahedge
The Eurekahedge Hedge Fund Index grew 1.03% in December while underlying markets as represented by the MSCI World Index were up 2.38% over the same period. Among regional mandates, North American managers led the table, up 1.22% during the month followed by European managers with 1.07%. Across strategies, event driven hedge funds were in the lead with 1.65% gains followed by macro hedge funds with 1.32%.
January 2017 | Eurekahedge
Hedge funds gained 1.03% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as the Trump-driven reflation theme buoyed markets in a somewhat ‘honeymoon’ period post-election. The S&P 500 Index gained 1.82% during the month, with the DJIA also up 3.34%.
January 2017 | Eurekahedge
Quantitative hedge fund strategies have received considerable interest from investors over the last decade. The application of growing computing power and the availability of big data has enabled these systematic trading models to capitalise on market inefficiencies that were otherwise difficult to identify or harvest given the implied trading costs. However, this growth has met with some headwinds on two key accounts; firstly, trading models built using back-tests on historical data have often failed to deliver good returns in real time (as previously identified trends have broken down), and secondly, the diffusion of similar quant models which has led to crowding in the space and consequently depressed the returns from such strategies.
January 2017 | Eurekahedge
2016 has been quite a nerve-wrecking year as the global hedge fund industry anticipated and responded to a string of unexpected events. As such, market jitters were very much present for investors as the results of two major events which had happened - Brexit and the US Presidential Elections, had caught the world by surprise. The global hedge fund industry faced steep redemption pressure from investors this year, with total net outflows coming in at US$28.2 billion. On the other hand, managers posted good performance-based gains, up US$17.8 billion over the same period.
January 2017 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at January 2017. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size, head office locations and the best and worst performances of the year.
December 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.41% in November while underlying markets as represented by the MSCI World Index grew 2.88% over the same period. Among regional mandates, North American managers led the table, up 2.28% during November followed by Japan managers with 1.16% gains. Across strategies, event driven hedge funds led with 1.85% growth followed by distressed debt hedge funds which grew 1.69%.
December 2016 | Eurekahedge
Hedge funds were up 0.41% during the month of November, with 2016 year-to-date returns coming in at 3.53%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.88% in November with its 2016 year-to-date returns at 4.88%. Roughly 56% of underlying constituent funds for the Eurekahedge Hedge Fund Index were in positive territory this month, with majority of them being long/short equities mandated. North American hedge fund managers posted the best returns among regional peers this month, with gains of 2.28% while among strategic mandates, event driven hedge funds led the tables with gains of 1.85%.
December 2016 | Eurekahedge
Event driven and their sub-group of distressed debt hedge fund strategies account for almost 12% of the global hedge fund assets under management, standing at US$266.5 billion as of November 2016. Despite posting the best returns among hedge fund strategic mandates in 2016 (distressed debt and event driven strategies are up 11.89% and 8.15% respectively which compares with average global hedge fund gains of 3.50%), the two strategies have seen investor redemptions for most of 2016. Event driven strategies saw outflows of US$13.5 billion in 2016, while distressed debt hedge funds recorded redemptions of US$2.1 billion which compares with industry wide investor redemptions of US$28.2 billion for the year.
December 2016 | Eurekahedge
European hedge fund managers have had a challenging year in 2016, with redemption activity picking up for the past six consecutive months. Year-to-date investor redemptions stood at US$7.4 billion as of October 2016, a stark contrast from stronger investor allocations totalling US$32.4 billion over the same period last year.
December 2016 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2016. Find out more about European 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.
December 2016 | Eurekahedge
Mitchell Presnick is Director and Partner with Marco Polo Pure China Fund. Mr. Presnick holds an MBA (1999) from the Rutgers Graduate School of Business in Newark, New Jersey, a graduate diploma in Chinese language (1990) from Peking University in Beijing, and a BBA (1988) from James Madison University in Harrisonburg, Virginia. He is fluent and literate in Mandarin Chinese. Mitch is a prominent American business commentator in Asia and a permanent resident of Hong Kong. He brings over 28 continuous years on-site China business experience.
November 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index declined 0.48% in October outperforming underlying markets as represented by the MSCI World Index which was down 1.38% over the same period. Among regional mandates, Latin American managers led the table, up 4.07% during the month followed by Japan managers who gained 2.28%. Across strategies, distressed debt hedge funds led the table with gains of 1.96% followed by fixed income hedge funds which were up 0.51%.
November 2016 | Eurekahedge
Hedge funds witnessed their first decline in seven months, down 0.48% in October. Despite being in the red this month, hedge funds have outperformed underlying markets, with the MSCI AC World Index (Local) losing 1.38% over the same period. While the US Presidential Elections loomed in the background, markets moved in the rhythm of a series of economic data releases as well as central bank meetings this month.
November 2016 | Eurekahedge
CTA/managed futures hedge fund strategies account for almost 11% of the global hedge fund assets under management (AUM), accounting for US$250.3 billion as of October 2016. While the global hedge fund industry has seen redemptions of US$16.6 billion in 2016; the highest on record since 2009, CTA/managed futures strategies have continued to attract investor capital for the second consecutive year in a row. The strategy has seen net investor allocations of US$12.2 billion in 2016, following capital inflows of US$29.0 billion in 2015. Average index returns for the strategy have been muted over the last two years (this following their strong showing in 2014 when the Eurekahedge CTA/Managed Futures Hedge Fund Index was up 9.62%), the prospect of uncorrelated returns, both to traditional and hedge fund mandates adds much to the appeal of CTA/managed futures hedge funds in an investor’s portfolio.
November 2016 | Eurekahedge
The US$54.9 billion Latin American hedge fund industry grew by US$0.6 billion over the past nine months. Though a modest figure, this represents the industry’s first year-to-date asset expansion since 2013. Much of this year’s asset expansion is attributed to positive performance-based figures totalling US$1.4 billion while investors redeemed US$0.8 billion from the industry.
November 2016 | Eurekahedge
VL Asset Management Limited was founded in 2009 in Hong Kong by veteran investor Vincent Lam and ex-lawyer Adrian Wong. The company, being a home-grown boutique house though, has strengthened its team from two to nine members in less than seven years. Its flagship, VL Champion Fund, with a long-short equity mandate, was launched in mid-2009 and has been up and running with a loyal and steadily-growing investor base. VLAM launched an authorised fund VL China Fund in August 2015. Vincent Lam shares with Eurekahedge the fund's investment strategy.
November 2016 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at November 2016. Find out more about Latin American 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.
November 2016 | Eurekahedge
David Liebowitz has been an investment professional for over 33 years. Prior to founding Aroya Capital LP, David served Bear Stearns in a number of capacities from 1983 to 2005. The common thread of his experience was his involvement in proprietary trading during his entire 22 years career at Bear – initially Risk Arbitrage and then Convertible Arbitrage for many years. Over the course of his career at Bear he managed as much as $4 billion of proprietary capital as well as $1.4 billion of client assets. In 1993 David was elected to the Board of Directors of The Bear Stearns Companies, Inc., serving as a director until 2001.
October 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.48% in September while underlying markets as represented by the MSCI World Index grew 0.19% over the same period. Among regional mandates, Japan managers led the table up 1.27% during the month followed by North American managers who were up 0.93%. Across strategies, distressed debt hedge funds led the table with gains of 1.12% followed by event driven hedge funds with 0.86%.
October 2016 | Eurekahedge
Hedge funds were up 0.48% in September outperforming underlying markets, as represented by the MSCI AC World Index (Local) which gained 0.19% during the month. The trading scene was affected by a series of macro data, central bank meetings, OPEC and to a lesser extent the US Presidential debate. Strong jobs data throughout the past couple of month added to the rate hike anticipation at the Fed meeting, which however, ended with no action.
October 2016 | Eurekahedge
Long/short equity hedge fund strategies account for almost 36% of the global hedge fund asset under management (AUM), accounting for US$801.7 billion as of September 2016. Following a difficult start to the year, the strategy is on its way to recovery following four consecutive months of positive returns with the Eurekahedge Long Short Equity Hedge Fund Index up 2.47% for the year. However, given the challenging market environment since end 2013, long/short equity manager have posted low single digit returns over the last three years – up 3.69% in 2014, 3.04% in 2015 and 2.47% September 2016 YTD; a development that has slowed investor allocations into the strategy and contributed in part to a decline in the net growth activity (launches less closures). The outlook remains challenging for the moment, and the fourth quarter holds much in store from the outcome of the US elections to the Fed’s signalling on the pace of future rate hikes that could potentially limit the upside for the stra
October 2016 | Eurekahedge
The US$1.49 trillion North American hedge fund industry has been resilient amid challenging market conditions, with the trading environment over the course of the year being a rather exciting albeit nerve-wrecking one so far. The industry’s assets under management (AUM) grew by US$19.1 billion during the year largely on the back of performance-driven gains (US$14.3 billion). Investor inflows were somewhat lacklustre this year with US$4.8 billion of allocations to date, down from inflows of US$40.5 billion over the same period in 2015.
October 2016 | Eurekahedge
Eurekahedge’s North American hedge funds infographic sums up the industry as at October 2016. Find out more about North American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size and geographic AUM, head office locations and the best and worst performances of the year.
September 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.03% in August while underlying markets as represented by the MSCI World Index gained 0.48% over the same period. Among regional mandates, Asia ex-Japan managers led the table, up 1.26% during the month followed by Latin American managers who were up 0.71%. Across strategies, distressed debt hedge funds led the table 1.71% returns followed by event driven hedge funds with 1.42%.
September 2016 | Eurekahedge
Hedge funds were up a marginal 0.03% in August, with much of the weakness being led by underlying CTA/managed futures and macro mandated hedge funds. Meanwhile, underlying markets, as represented by the MSCI AC World Index (Local) grew 0.48%. While August was a relatively quiet month, central bank actions dominated the trading scene especially towards the end of the month. This affected much of the trend-following and commodity-focused hedge funds, both of which are sub-sets of the broader CTA/managed futures strategy.
September 2016 | Eurekahedge
Volatility investing hedge funds are a much overlooked segment of the hedge fund industry - niche players who invest exclusively in volatility as either a standalone alpha generating strategy or as part of a diversified portfolio seeking to provide downside protection during periods of elevated market stress. The strategy though is ripe for a comeback, and a source of much added value for investors seeking to hedge their portfolios during uncertain times and possibly flirt with the notion of direct exposure to volatility as an asset class in its own right. The report which follows will review the performance of the CBOE Eurekahedge Volatility Indexes over the years and the added benefits that can arise from increasing allocations towards volatility investing strategies.
September 2016 | Eurekahedge
Global financial markets have been peppered with a series of events adding to volatile conditions in the trading environment. Within Asia, monetary stimulus continues to be a main theme as global events weigh in on investor sentiment. The fallout from Brexit; though largely contained for the moment, and the US Federal Reserve’s unconfident march towards policy normalisation will be much watched for as 2016 draws to a close.
September 2016 | Eurekahedge
Eurekahedge’s Asian hedge funds infographic sums up the industry as at September 2016. Find out more about Asian hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size and geographic AUM, head office locations and the best and worst performances of the year.
September 2016 | Eurekahedge
Ivan Popovic is a founding partner of Tolomeo Capital and serves as the company’s Managing Partner. At Tolomeo Capital, Ivan oversees the day-to-day running of the business.
Nicolas Mirjolet is a founding partner and the Chief Investment Officer (CIO) of Tolomeo Capital. In this function, he is responsible for portfolio management and the daily trading operations of Tolomeo’s investment products.
August 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 1.52% in July while underlying markets as represented by the MSCI World Index gained 4.18% over the same period. Among regional mandates, Latin American managers led the table, up 4.44% during the month followed by Asia ex-Japan managers who grew 2.79%. Across strategies, relative value hedge funds led the table with gains of 2.51% followed by long/short equities hedge funds which were up 2.34%.
August 2016 | Eurekahedge
Hedge funds gained for the fifth consecutive month in July, up 1.52% while underlying markets, as represented by the MSCI AC World Index (Local) gained 4.18%. Roughly 73% of the underlying constituent hedge funds for the Eurekahedge Hedge Fund Index were in positive territory this month thanks to a broad-based rally in global equity markets and an improving investor risk appetite post-Brexit. Markets were a little perturbed by a series of central bank meetings. Bund yield barely moved after the ECB meeting left current measures unchanged, signalling that investors are still anticipating another round of ECB stimulus in the coming months.
August 2016 | Eurekahedge
The <em>Eurekahedge Commodity Hedge Fund Index</em> is an equal-weighted index which tracks the performance of underlying hedge fund managers who invest exclusively into commodities and commodities-related instruments. In our analysis, the <em>Eurekahedge Commodity Hedge Fund Index</em> was up 0.77% in July (9.19% July year-to-date) in what turned out to be a good month for managers allocating to precious metals, energy and softs. Underlying managers reported impressive gains made from the rally in precious metals in July as gold climbed during the latter half of the month, on the back of a weakening greenback and lacklustre GDP figures coming from the US. Short positions in crude oil proved to be profitable as concerns of a sat
August 2016 | Eurekahedge
The first half of 2016 was certainly eventful as financial markets anticipated and reacted to global developments. Emerging market assets performed strongly towards the second quarter of the year as oil and commodity prices showed signs of recovery. Events in the developed world have also added to heightened volatility in the markets, especially in the days leading up to the Brexit referendum with investors fleeing to safe haven assets.
August 2016 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at August 2016. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size and geographic AUM, head office locations and the best and worst performances of the year.
August 2016 | Eurekahedge
Mason Chau, Chief investment officer, BBA, Msc (E-commerce), CPA., FCCA, is the founder of OIL Assets International Limited. Prior to this, he has held senior position in BZW Asia Limited and HSBC Securities Limited. Mason also has extensive experience in direct investment and private equity.
July 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 0.63% in June while underlying markets as represented by the MSCI World Index fell 1.38% over the same period. A weak global macroeconomic outlook coupled with strong headwinds in the aftermath of Brexit proved to be a challenging environment for managers.
July 2016 | Eurekahedge
Hedge funds successfully traded their way around an overwhelming month in June and were up 0.63% while underlying markets as represented by the MSCI World Index lost 1.38% during the month. A number of managers had lowered their overall risk exposure in the lead up to Brexit, and were quick to reverse their positions and capitalise on winning trends that emerged subsequently such as the rally in the yen and emerging currency pairs vis a vis US dollar; and short positions in the pound which declined to historic lows.
July 2016 | Eurekahedge
The Eurekahedge FX Hedge Fund Index tracks the performance of dedicated currency investing hedge funds in the spot, futures and forward markets utilising both systematic and discretionary overlays and investing across all of major, minor and exotic currency pairs. The Eurekahedge FX Hedge Fund Index was up 0.10% in June in what turned out to be a volatile month for global currencies. Underlying managers reported losses on their long USD versus emerging market currency pairs’ positions in the earlier part of the month as disappointing US non-farm payroll data pushed back expectations of a summer rate hike in the US. Short positions in the Rand proved to be costly for managers as South Africa avoided an expected ratings downgrade ...
July 2016 | Eurekahedge
The European hedge fund industry continues to gain traction among investors despite market turbulence dominating the trading landscape since the start of the year. Investor allocations into the industry stood at US$13.4 billion over the last five months of 2016, up US$4.2 billion compared to allocations over the same period last year. Manoeuvring volatile markets has proved to be a challenge with managers posting year-to-date performance-based losses of US$6.8 billion, compared to gains of US$14.3 billion over the same period last year.
July 2016 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at July 2016. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size and geographic AUM, domiciles, head office locations and the best and worst performances of the year.
July 2016 | Eurekahedge
Since the onset of the global financial crisis, investors worldwide have grown more cautious in undertaking investments and have increased their demands for underlying investment products and instruments to be monitored by international compliance standards. The Undertakings for Collective Investment in Transferable Securities or ‘UCITS’ was developed to meet this post-crisis demand, with certain restrictions such liquidity of the underlying assets and leverage caps to provide added transparency to investors.
July 2016 | Eurekahedge
Eurekahedge's UCITS hedge funds infographic sums up the industry as at July 2016. Find out more about UCITS hedge fund assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, domiciles, head office locations, performance comparison, and the best and worst performances of the year.
June 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.40% in May while underlying markets as represented by the MSCI World Index grew by 1.28% over the same period. Among regional mandates, North American managers posted the best returns, up 1.03% during the month followed by European and Japanese hedge funds which saw gains of 1.00% each. Across strategies, distressed debt hedge funds led the tables with gains of 1.66% followed by event driven hedge funds which were up 1.29%.
June 2016 | Eurekahedge
Hedge funds were up 0.40% in May while underlying markets, as represented by the MSCI World Index gained 1.28% over the same period. Managers held their ground despite tight markets in May with mid-month reversals across commodities, and weaker equity performance in developing markets affecting the trading scene. Risk appetite somewhat sustained during the month with oil prices remaining resilient going into May. Distressed debt hedge funds were a clear lead among strategic mandates, up 1.66% while North American managers led regional mandates, up 1.03%. Among profitable moves for managers were long developed markets consumer stocks, some into European consumer and information technology names.
June 2016 | Eurekahedge
The first four months of 2016 saw some renewed investor interest into the Latin American hedge fund space. Total assets for Latin American hedge funds grew US$0.8 billion as of April 2016 year-to-date, roughly twice the level of asset growth seen over the same period last year. The Eurekahedge Latin American Long Short Equities Hedge Fund Index and Eurekahedge Latin American Multi-Strategy Hedge Fund Index were up 11.21% and 8.53% respectively as of April 2016 year-to-date. Investor optimism in the region was evident as major Latin American equity indices rallied at the start of the year. The MSCI Latin America Index was up 15.24% in 2016 year-to-date as resilient oil and commodity prices have helped in pushing up the valuations of underlying assets.
June 2016 | Eurekahedge
Eurekahedge’s Latin American hedge funds infographic sums up the industry as at June 2016. Find out more about Latin American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.
May 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.88% in April while underlying markets as represented by the MSCI World Index gained 0.67% over the same period. Among regional mandates, Latin American managers posted the best gains, up 3.93% during the month followed by North American hedge funds which saw gains of 1.25%. Across strategies, relative value hedge funds led the table with gains of 1.96% followed by event driven hedge funds which were up 1.34%.
May 2016 | Eurekahedge
Hedge funds outperformed underlying markets in April and were up 0.88% during the month while underlying markets as represented by the MSCI World Index gained 0.67%. Emerging market managers continued to perform well during the month supported by resilient oil and commodity prices which helped to inject some investor optimism. A confluence of factors has helped oil gain some support despite ineffective talks between OPEC members while rather encouraging Chinese macro data and stimulus measures have also aided in providing a better outlook for the Chinese economy, resulting in the climb in prices across the commodity space.
May 2016 | Eurekahedge
Eurekahedge’s funds of hedge funds infographic sums up the industry as at May 2016. Find out more about funds of hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.
May 2016 | Eurekahedge
36ONE Asset Management is an independent owner-managed specialist investment manager based in Johannesburg, South Africa. Our investment philosophy is to focus on fundamental analysis while using a macro overlay to understand which themes complement our fundamental approach and for risk management purposes with the aim of generating above-average real returns. We continually manage our investments in a flexible manner to reflect changing market conditions. Cy Jacobs shares with Eurekahedge the fund's investment strategy.
May 2016 | Danial Idraki, Islamic Finance News
Derivatives and hedging are tools that remain necessities in the financial system as a way to manage risks that might arise from uncertainties and price fluctuations in the market, although it remains a contentious subject in Islamic finance due to some of the features in the instruments that invite speculative trading. Views are often split from a Shariah standpoint, given that excessive uncertainty and speculation are concepts not permissible in Shariah compliant transactions.
April 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 1.33% in March while underlying markets as represented by the MSCI World Index declined 5.47% over the same period. Among regional mandates, Latin American managers posted the best gains, up 4.85% during the month followed by Asia ex-Japan hedge funds which saw gains of 4.78%. Across strategies, event driven hedge funds led the table with gains of 3.16% followed by distressed debt hedge funds were up 3.03% - an impressive rebound after their four-month losing streak.
April 2016 | Eurekahedge
Hedge funds recovered part of their losses from earlier in the year and were up 1.33% in March as underlying markets represented by the MSCI World Index gained 5.47% in what shaped up to be a positive month for global markets. The Fed's decision to roll back further on its scheduled interest rate hikes for 2016, coupled with rising oil prices and monetary easing in China provided much need relief for the markets. As of end-Q1 2016, hedge funds are down 0.37%, ahead of underlying markets as the MSCI World Index posted losses of 1.97%.
April 2016 | Eurekahedge
The world economy had a shaky start in 2016 with investors flocking to safe haven assets amid a volatile market environment. The global hedge fund industry’s asset base contracted US$20.1 billion as of February 2016 year-to-date, with performance-driven losses a main contributor to this contraction. Performance-based losses stood at US$16.6 billion in the first two months of 2016 alone, while investor outflows of US$3.5 billion were recorded. The assets under management (AUM) of the global hedge fund industry currently stand at US$2.22 trillion, managed by a total of 11390 hedge funds. Going into 2016, further easing seems to be a main theme as central bankers worldwide have largely adopted accommodative monetary policies in an attempt to re-energise the current lethargy of the world economy.
April 2016 | Eurekahedge
Eurekahedge’s global hedge funds infographic sums up the industry as at April 2016. Find out more about hedge fund assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.
April 2016 | Eurekahedge
InnoFusion Capital Management runs a multi-strategy fund focused in relative value/arbitrage strategies. The fund invests in a wide range of asset classes and financial products, including equities, fixed income, convertible bonds, commodities and derivatives. During the last 10 years, the fund return 14.35% per annum with very low correlation to various markets and asset classes. Dr. Leung Wing Cheong, CEO and CIO shares with Eurekahedge the fund's investment strategy.
April 2016 | Eurekahedge
Hyung-Kyu Choi is the Managing Partner of Korean-based asset management firm QUAD Investment Management since January 2014. With 16 years of experience in investments, FX trading and credit analysis, Hyung-Kyu shares with us the fund's investment objective, along with his thoughts about the impact of smart watches on the industry, and display technology.
March 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 0.36% in February while underlying markets as represented by the MSCI World Index declined 1.43% over the same period. Among regional mandates, Japanese managers posted the steepest loss down 3.83% during the month followed by Asia ex-Japan hedge funds which saw losses of 1.78%. Across strategies, CTA/managed futures hedge funds led the table with gains of 2.62% propped up by exposure into safe haven assets such as gold and the Bund.
March 2016 | Eurekahedge
Hedge funds bounced into positive territory in February despite volatile market conditions – up 0.36% during the month, outperforming underlying markets as the MSCI World Index declined 1.43% over the same period. The global risk-on mode continued into February as investors fled to safety with yields on sovereign bonds particularly the Bund, ending lower as investors anticipate Draghi’s stimulus shots in the ECB’s coming March meeting. Over in Asia, much of the equity market weakness was led by the Japanese markets as dovish comments from Janet Yellen sent the yen appreciating mid-month.
March 2016 | Eurekahedge
The North American hedge fund industry continues to grow despite muted returns in 2015 when a challenging market environment saw underlying managers post sub-zero returns in what was the worst year for managers since the lows of 2008. However, not all was doom and gloom. North American managers running Asia Pacific, broad emerging market and European mandates ended 2015 in the green, while across strategic mandate arbitrage strategies; in particular managers employing volatility based strategies post good returns.
March 2016 | Eurekahedge
Eurekahedge’s global hedge funds 2015 overview infographic sums up the industry for the past year. Find out more about hedge fund assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.
March 2016 | Eurekahedge
Christopher Peck has been in the industry with 16 years of experience in Japan and Singapore and currently focuses on resources and mezzanine debt at Maiora Asset Management.
March 2016 | Eurekahedge
Noemi Holecz, a risk and portfolio manager of Loyal Explorer Fund shares how the fund stands out from competition through advanced quantitative methodologies utilised by Colombus Investment Management.
February 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index lost 1.20% in January while underlying markets as represented by the MSCI World Index were down 5.71%. All regional mandates were down during the month as global equities faced intense sell-off pressure; much of the weakness in equity markets was led by Asian equities. Asia ex-Japan managers posted losses of 3.15% during the month followed by Japanese hedge funds which saw losses of 2.71%. Across strategies, CTA/managed futures hedge funds led the table with gains of 2.32% during the month while other strategies languished in negative territory.
February 2016 | Eurekahedge
January was not a happy start to the year for hedge funds as managers witnessed a drag in performance - down 1.20% during the month, as investor panic induced strong downward pressure on equity markets leading to a sell-off and the resulting capital flight to safe havens. The MSCI World Index declined 5.71% over the same period with much of the weakness in the global equity markets being led by Asia. Indeed, all eyes were on Asia in January as developments in East Asian economies along with a tumbling oil price took centre stage and sent ripples throughout the region and beyond.
February 2016 | Quantvest
The Eurekahedge 50 (EH50) index was designed to represent the exposures and experience of institutional hedge fund investors. Seeking to create a more selective benchmark reflective of diversified, institutional-quality multi-manager portfolios, Markov Processes International (MPI), in partnership with Eurekahedge, launched this unique Index in December 2014. After its first full year, the industry’s first measure of the collective performance of top hedge funds delivered better risk-adjusted returns with fewer turnovers than all-inclusive hedge fund indices.
February 2016 | Elizabeth Kemery Sipes, Mark W. Weakley and Rafael E. Mendez, Bryan Cave
In 2010 the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) eliminated the private fund adviser exemption. Prior to Dodd-Frank, many managers to hedge funds and private equity funds relied on this exemption from registration as investment advisers. After Dodd-Frank, many private investment fund managers were required to register with the U.S. Securities and Exchange Commission (SEC) as investment advisers. These investment advisers are now subject to significant on-going compliance obligations and examination by the SEC.
February 2016 | Don Andrews, Venable LLP
In 2014, the SEC formed the Private Funds Unit (PFU), a multi-disciplinary task force designed to specifically address matters that had surfaced during their initial round of ‘presence examinations’ for private funds, which commenced in 2012. Since that time, much has happened. Examinations revealed material weaknesses and deficiencies among private equity firms in the areas of valuation, performance reporting, disclosure to limited partners and conflicts of interest. The staff of the SEC has commenced enforcement actions against a number of private equity firms and indicated that the industry can expect additional enforcement actions related to the above issues.
January 2016 | Eurekahedge
The Eurekahedge Hedge Fund Index lost 0.70% in December while underlying markets as represented by the MSCI World Index were down 2.23%. The performance of regional mandates was mixed during the month with Asia ex-Japan managers leading the table with gains of 1.45% followed by Japanese managers up 0.27%. Meanwhile the performance of European managers was flat, while Latin American and North American hedge funds languished, down 0.60% and 0.94% respectively during the month.
January 2016 | Eurekahedge
2015 did not end with much pomp and circumstance and was a challenging year for managers. Hedge funds ended 2015 on a low note with the Eurekahedge Hedge Fund Index down 0.70% in December, while the MSCI World Index declined 2.23% during the month. Overall for 2015, hedge funds were up 1.45% (their lowest annual return on record since 2011) amid a challenging market environment. Meanwhile underlying markets as represented by the MSCI World Index ended the year in the red, down 0.48%.
January 2016 | Eurekahedge
Market calamity took Asian hedge funds on a rough ride in 2015, and despite facing financial storms, Asian hedge funds have recorded positive assets under management (AUM) growth in the last quarter of 2015 with the industry’s total asset base growing by US$9.5 billion as of November 2015 year-to-date, bringing the total size of the industry to reach US$171 billion, managed by 1,423 hedge funds.
January 2016 | Scott C. Budlong, Richards Kibbe & Orbe LLP
On December 4, 2015, President Obama signed into law the Fixing America’s Surface Transportation Act (the ’FAST Act’). The legislation primarily related to the federal transportation matters, but lurking toward its end is an amendment to the Securities Act of 1933 (the ‘Securities Act’) establishing a new registration exemption for private resales of securities. The exemption is embodied in new §4(a)(7) of the Securities Act. It is largely based on (but does not replace) the so-called ‘Section 4(a)(1-½) exemption’ that securities lawyers have developed over time under the SEC’s eye.
December 2015 | Eurekahedge
The Eurekahedge Hedge Fund Index continues to gain ground in Q4, ending with an increase of 0.77% during the month of November. Meanwhile underlying markets as represented by the MSCI World Index were up 0.38%. All hedge fund regional mandates posted positive returns during the month with most equity markets ending the month in positive territory.
December 2015 | Eurekahedge
Hedge funds gained for the second consecutive month up 0.77% in November outperforming underlying markets as represented by the MSCI AC World Index All Core, which gained 0.38% during the month. November was dominated by the theme of a US rate hike later in the year, along with the European Central Bank's (ECB) dovish stance regarding further easing in the Eurozone. The latter has been to some extent realised earlier during the month when the ECB decided to cut deposit rates even further, adding to their menu an ever expansive array of negative yielding bonds on offer from countries otherwise plagued with anaemic growth. It would be interesting to see how this easy credit and the simultaneous calls for reforms aka austerity will lead the Eurozone onto firmer grounds.
December 2015 | Eurekahedge
The European hedge fund industry has been gaining ground despite the challenging circumstances in the Eurozone region. Given the strong recovery posted by European hedge funds, March 2014 saw the industry’s assets under management (AUM) breach past its October 2007 pre-crisis AUM of US$478.1 billion. The situation in Greece earlier this year has not deterred AUM growth in the region with total assets climbing steadily to reach US$525.9 billion as at October 2015, managed by a total of 3,998 hedge funds. On a year-to-date basis, the total AUM of European hedge funds has grown by US$39.1 billion, largely on the back of strong investor flows which have account for the bulk of this growth.
December 2015 | Eurekahedge
AXA Investment Managers is an active, long-term, global, multi-asset investor focused on enabling more people to harness the power of investing to meet their financial goals. By combining investment insight and innovation with robust risk management, AXA IM has become the chosen investment partner of investors worldwide. Eurekahedge speaks to Larry Jones, Head of Portfolio Management, Alternative Solutions to find out more.
December 2015 | Eurekahedge
Founder and Portfolio Manager Tom Lin has extensive experience in the Asian equity markets as an analyst, investor, and an investment banker. Prior to founding the firm, Mr. Lin managed and launched technology equity sales units for Merrill Lynch, Lehman Brothers, and Deutsche Bank, as well as held a sector analyst role at Anthion Capital. Mr. Lin lived and worked in both Taiwan and Hong Kong for a combined 20 years.
December 2015 | John Kaufmann, Greenberg Traurig
In a recently released Chief Counsel Advice Memorandum (the “CCA”), the Internal Revenue Service broadened its scrutiny of so-called ‘barrier option’ transactions, which tax-payers have used to defer recognition of income and to convert ordinary income and short-term capital gain to long-term capital gain. The government had previously announced that it would scrutinise these transactions in guidance released in 2010 and in July of this year. The CCA is consistent with the previous guidance, and expands upon it in two ways:
November 2015 | Eurekahedge
The Eurekahedge Hedge Fund Index ended its four month losing streak, gaining 1.33% in October 2015. Underlying markets as represented by the MSCI World Index were also up this month, gaining 7.22%. Returns across all regional mandates were positive this month as the market rebounded in October.
November 2015 | Eurekahedge
Hedge funds ended their four month losing streak, gaining 1.33% in October as most major equity markets ended the month in positive territory. Underlying markets as represented by the MSCI World Index posted strong gains during the month, up 7.22%. Central bank policies remained divergent with the European Central Bank (ECB) and the Bank of Japan (BoJ) rather dovish, reiterating their intent to meet inflation targets as part of their broader strategy to support growth in their respective economies. On the other hand, the Fed appears to be hinting at a long overdue rate hike in December which seems likely given the encouraging employment numbers coming out from the US as well as the stabilising outlook overseas - mainly China which appears to have weathered the worst for the moment.
November 2015 | Eurekahedge
Latin American hedge funds have been experiencing dwindling interest from investors over the last few years as they cope with redemption pressure and stagnating performance-based gains compared to other regional mandates. The global economic slump throughout 2015 has not spared the Latin American economies - commodity-dependent countries in the region were affected by the slowing growth of export destination countries such as China and the US. The fall in commodity and oil prices and the weakening of the real and peso are also affecting the ability of companies to fulfil their debt obligations, while political instability continues to affect the region. Meanwhile, depending on the Fed’s interest rate hike timing, capital outflows from the Latin American region could put them in a worse shape than before.
November 2015 | Eurekahedge
With 20 years of experience in wealth management, the CEO of Abacus Asia Management, Alex Goh discusses the fund's origins and strategy, as well as overcoming challenges faced in the Asian markets.
October 2015 | Eurekahedge
The Eurekahedge Hedge Fund Index fell into negative territory this month, down 0.58% in September 2015, though outperforming underlying markets as represented by the MSCI AC World Index All Core which lost 3.60% during the month. Returns across all regional mandates were mixed as market and macroeconomic themes are starting to shape investor sentiments globally
October 2015 | Eurekahedge
Hedge funds fell for the fourth consecutive month in September down 0.58% though still outperforming underlying markets as represented by the MSCI AC World Index All Core, which declined 3.60% during the month. Equity markets continued their slide this month as markets are still reeling from the Chinese equity market swing over the past months. Further to that, soft PMI data from China and the Fed’s vacillation over its long overdue rate hike added to the risk-off sentiment in the market while a commodity induced deflationary environment will continue to be a source of worry for emerging markets as central banks have little room to manoeuvre given the existing low interest rate environment.
October 2015 | Eurekahedge
The North American hedge fund industry grew by US$54.2 billion as of 2015 year-to-date, on the back of strong investor inflows which account for roughly two-thirds of total asset growth in the region. Despite mixed economic performance in the US during the year, investor inflows stood at US$34.5 billion while performance-driven gains stood at US$19.8 billion year-to-date, bringing the total assets under management (AUM) of the North American hedge fund industry to US$1.48 trillion managed by 5,432 hedge funds as at August 2015.
September 2015 | Eurekahedge
The Eurekahedge Hedge Fund Index fell into negative territory this month, down 1.81% in August 2015, though outperforming underlying markets as represented by the MSCI World Index which was down 6.66% during the month. Returns across all regional mandates were dented this month as investors grew cautious of the uncertain economic outlook.
September 2015 | Eurekahedge
Hedge funds fell into negative territory this month – down 1.81%, though comfortably outperforming underlying markets as the MSCI World Index lost 6.66%. Equity markets were down across the board this month with Chinese equity markets posting double-digit losses in the aftermath of the Chinese stock market correction. Disappointing macroeconomic data from China pointed towards a less optimistic outlook for Asia Pacific’s largest economy despite aggressive government intervention to ensure the country’s liquidity cushion is maintained. Fears of a financial contagion led equity markets down this month as investors were wary of a spill over from China’s volatile markets.
September 2015 | Eurekahedge
The Asian hedge fund industry grew steadily in 2015 with the asset base growing at twice the rate seen over the same period last year. With strong investor inflows during the year, total assets under management (AUM) increased by US$16.1 billion in July year-to-date, bringing the total size of the Asian hedge fund industry to US$177 billion managed by 1,413 hedge funds.
In this month’s key trends in Asian hedge funds report, we include a feature on Greater China, a region which has made headlines since late-2014. Chinese authorities have sought active intervention in the markets with a series of interest rate cuts, municipal debt-swap programs and ease of banking restrictions through reserve ratio cuts and loan deposit ratios in an attempt to inject the Chinese economy with further liquidity. As such, Greater China mandated hedge funds have seen strong growth in the beginning of the year as the Chinese equity markets rallied on the backs of relaxed capital controls and improving infra
September 2015 | Eurekahedge
Along with this month’s key trends in Asian hedge funds report, we include a feature on Greater China, a region which has made headlines since late-2014. Chinese authorities have sought active intervention in the markets with a series of interest rate cuts, municipal debt-swap programs and ease of banking restrictions through reserve ratio cuts and loan deposit ratios in an attempt to inject the Chinese economy with further liquidity.
August 2015 | Eurekahedge
The Eurekahedge Hedge Fund Index rebounded this month, up 0.27% in July 2015, while the MSCI World Index was up 1.34%. Returns for Asia ex-Japan were dented this month, down 2.60% as the end of the Chinese equity market euphoria has depressed gains for hedge funds with Greater China exposure. However, European, North American and Japanese equity markets have bounced back from losses in the previous month with developed market hedge fund mandates posting good gains.
August 2015 | Eurekahedge
Hedge funds bounced into recovery this month - gaining 0.27%, though still underperforming underlying markets as the MSCI World Index gained 1.34%. Equity markets were mostly up this month with the US, European and Japanese equity markets recovering from last month’s losses, while the Chinese equity markets sell-off seemed to show signs of bottoming out following active intervention by the Chinese authorities. Asia ex-Japan suffered their second consecutive month of losses, down 2.60% as its heavyweight Greater China funds were down 8.49%.
August 2015 | Eurekahedge
The global hedge fund industry has seen a steady increase in its asset growth after experiencing uninterrupted redemption pressure in the second half of 2014, with asset growth totalling US$93.0 billion for the first half of 2015. Much of this growth is attributed to excellent performance-based gains which account for US$51.7 billion, together with continued investor inflows accounting for US$41.3 billion.
August 2015 | Karl P. Fryzel, Rebecca Melaas and Michael J. Conroy, Locke Lord LLP
On July 23, 2015, the Internal Revenue Service (IRS) issued long-awaited proposed regulations discussing the taxation of management fee arrangements commonly used by private equity funds and their management. The proposed regulations address the tax treatment of disguised payments for services under Section 707(a)(2)(A) of the Internal Revenue Code (the Code) where a partner has rendered services to a partnership in a capacity as other than a partner. By specifically classifying certain fee arrangements, including particular carried interest mechanisms, as disguised payments for services, the proposed regulations target purportedly abusive situations where private equity funds use management fee waivers to convert services income, taxable at the ordinary rates, into income items meriting capital gain treatment.
July 2015 | Eurekahedge
The Eurekahedge Hedge Fund Index posted its first losing month in 2015, down 1.19% in June, outperforming underlying markets as represented by the MSCI World Index which was down 2.88% during the month. Despite a strong start to the year, events in Europe and China have dented hedge fund returns in June, with overall 1H 2015 returns coming in at 3.37%, comparable to the 3.11% gain seen over the same period last year.
July 2015 | Eurekahedge
After five months of consecutive gains, hedge funds posted their first monthly loss in 2015 of 1.19% in June, though comfortably outperforming underlying markets as the MSCI World Index fell 2.88% during the same month. Asia ex-Japan mandated hedge funds suffered their worst month of losses since June 2013, down 1.58% as Chinese equity markets entered into correction during the month. The Shenzhen and Shanghai Composite Indices declined by 11.78% and 7.25% during the month respectively. Talks between Greece and its creditors further overshadowed markets with European managers also posting losses of 1.13% during the month.
July 2015 | Eurekahedge
The European hedge fund industry has been gaining ground despite the challenging circumstances in the Eurozone region. Given the strong recovery posted by European hedge funds, March 2014 saw the industry’s assets under management (AUM) of US$478.1 billion breach past its October 2007 pre-crisis AUM. The onset of the recent Greek crisis has not deterred AUM growth in the region as AUM continued to climb steadily from 2012 onwards, reaching US$506.8 billion, managed by 4,016 hedge funds in May 2015. On a year-to-date basis, the total AUM of European hedge funds grew US$20.1 billion, largely on the back of performance-based gains which account for roughly two-thirds of the total growth in European AUM in 2015.
July 2015 | Eurekahedge
The Undertakings for Collective Investment in Transferable Securities, or ‘UCITS’, was designed to meet investor demand for well-regulated instruments monitored by improved compliance standards in the areas of investor protection, regulation and disclosure. The demand for UCITS products grew steadily after the financial crisis as UCITS hedge funds are of interest to investors especially during times of market stress. The regulatory bodies of the EU are continually updating and improving upon the product to maintain its relevance to investors, with the UCITS V being the most recent set of regulations implemented.
July 2015 | Aki Corsoni-Husain and Elina Mantrali, Harneys
Following the implementation of the EU Alternative Investment Fund Managers (AIFM) Directive (2011/61/EC) and associated legislation, Cyprus now lays claim to being a growth jurisdiction within the European Union for the establishment and servicing of boutique and low cost alternative investment funds based locally or offshore. The choice of fund administrator is of paramount importance to the set-up of any hedge fund and in Cyprus there are many reasons to use or establish locally-based operations.
June 2015 | Eurekahedge
The Eurekahedge Hedge Fund Index posted its fifth consecutive month of gains for 2015 and was up 0.54% in May while underlying markets as represented by the MSCI World Index gained 0.81% during the month. On a year-to-date basis, hedge funds are up 4.49% with Asian managers leading the tables with gains of 11.44%.
June 2015 | Eurekahedge
Hedge funds posted their fifth consecutive month of gains, returning 0.54% in May, while the MSCI World Index was up 0.81%. Asian hedge funds were strong performers this month with both Japanese and Asia ex-Japan hedge funds outperforming underlying markets. Japan mandated funds reported gains of 2.06%, followed by Asia ex-Japan mandated funds which were up 1.81% during the month. Indeed, good performance of Asian hedge funds was backed by strong equity market performance in the region. Japanese equity markets performed well during the month with the Nikkei 225 and the Tokyo Topix posting gains of 5.34% and 5.08% respectively.
June 2015 | Eurekahedge
Latin American hedge funds have been facing dwindling interest from investors over the past few years as they cope with redemption pressure and stagnating performance-based gains compared to other regional mandates. Despite challenges in the Latin American hedge funds space, managers have reported gains of 2.32% in 2014, outperforming the MSCI Latin America Index which was down 4.21% last year amid a difficult market environment.
May 2015 | Eurekahedge
Hedge funds edged higher in April to close at another record high, with the Eurekahedge Hedge Fund Index gaining 0.93%. However, hedge funds underperformed underlying markets this month as the MSCI World Index gained 1.25%. Easy monetary policy in Japan and Europe continued to push regional equities into record territory, while US market volatility rose with increasing uncertainty over the Federal Reserve’s timing of interest rate hikes and the outcome of the Greek talks.
May 2015 | Eurekahedge
Hedge funds posted their fourth consecutive month of gains returning 0.93% in April, while the MSCI World Index was up 1.25%. The NYSE Composite posted gains of 1.38% as of April, despite mediocre retail sales slump figures. Investor optimism fuelled by aggressive stimulus measures by the Chinese central bank is reflected in the strong climb of the CSI 300 Index closing the month of April with gains of 17.85%. With a continued equity rally in Japan headed by Japanese pension funds and further quantitative expansion by Bank of Japan, the Nikkei 225 closed April with gains of 1.63%. Meanwhile, in Europe, the ‘Grexit’ decision has yet to be made as talks towards averting the Greek government default are still in progress.
May 2015 | Eurekahedge
The global funds of hedge funds sector continued to face headwinds with total assets under management (AUM) of the industry in a steady decline since 2011. As of Q1 2015, the AUM of the funds of hedge funds sectors stands at US$505.9 billion managed by a total of 2,988 funds, having declined by roughly US$300 billion since their 2007 peak of US$808.7 billion.
April 2015 | Eurekahedge
Hedge funds edged even higher in March to close at another record high, with the Eurekahedge Hedge Fund Index gaining 0.78%, outperforming underlying markets as the MSCI World Index fell 0.39%. Easy monetary policy in Japan and Europe continued to push regional equities into record territory, while US market volatility rose with increasing uncertainty over the Federal Reserve’s timing of interest rate hikes and the outcome of the Greek talks.
April 2015 | Eurekahedge
Hedge funds reported their third consecutive month of gains, returning 0.78% and outperforming underlying markets as the MSCI World Index finished the month down 0.39%. Global equity markets performance was mixed, with overall gains seen in Europe and Japan while US equity markets retreated following weaker durables data signalling that perhaps the stronger dollar is finally beginning to bite into the US economic recovery. Although expected, the Federal Reserve made headlines during the month by dropping the word ‘patience’ from its statement during the month, opening up the possibility of an interest rate hike as soon as June but simultaneously reassuring investors that any rise would be gradual.
March 2015 | Eurekahedge
Hedge funds edged even higher in February to close at another record high, with the Eurekahedge Hedge Fund Index gaining 1.57%, though underperforming underlying markets as the MSCI World Index gained 5.47% after equities surged higher during the month. A return of investor risk appetite and easy monetary policy pushed equities into record territory, while volatility faded away with investors gaining further confidence in the market’s strength.
March 2015 | Eurekahedge
Hedge funds extended their gains in the second month of 2015, returning 1.57%, although falling behind underlying markets as the MSCI World Index was up 5.47%. Global equity markets rose in unison during February with a return of investor risk appetite as the market downplayed fears of contagion from a possible ‘Grexit’; further supported by accommodative monetary policies from central banks around the world. Volatility faded away along with increased investor confidence and rising equity markets with the CBOE VIX falling from 20.97 to 13.34.
March 2015 | Eurekahedge
North American hedge funds recorded excellent growth over the past 13 months despite a slowdown in the pace of expansion since the second half of 2014, raising the region’s share of assets under management (AUM) by another US$93.8 billion to approximately two thirds of the global hedge fund industry. As of January 2015, the total AUM of the North American hedge fund industry is closing in on the US$1.45 trillion mark and stands at US$1.447 trillion managed by a total of 5,267 hedge funds.
February 2015 | Eurekahedge
Hedge funds were off to a strong start in 2015, with the Eurekahedge Hedge Fund Index gaining 1.29%, outperforming underlying markets as the MSCI World Index fell 0.41% over concerns about a lack of global demand and Greece’s debt problems. This atmosphere of uncertainty and central bank activity contributed to heightened market volatility, which picked up in the first trading month of the year. US equities witnessed their largest loss since January 2014, underperforming global markets significantly as concerns over the strong US dollar and declining growth overseas weighed in on regional markets despite the strong economic picture in the US.
February 2015 | Eurekahedge
Hedge funds started 2015 on a good note, gaining 1.29% and outperforming underlying markets as the MSCI World Index slipped 0.41%. Global equity markets displayed mixed performance in January as the economic picture remained weak with fears mounting about a lack of global demand and high sovereign debt burdens. Volatility also rose as central bank actions dominated the markets during the month, with the CBOE VIX Index rising from 19.2 to 20.97 amid this atmosphere of uncertainty.
February 2015 | Eurekahedge
Islamic finance plays a key role in the global economy, covering the financial needs of the currently underserved Muslim population. With Muslims forming a quarter of the world’s population, this is potentially a very large market, yet less than 1% of financial assets are Shariah-compliant. Indeed, there appears to be a clear supply imbalance and the Islamic fund industry has been growing steadily over the years to accommodate this demand. While it does not seem likely to have reached a peak, the industry is projected to grow significantly larger driven by a younger generation of Muslims who are more open towards investing in financial assets, and also by wider increases in productivity and prosperity.
January 2015 | Eurekahedge
Hedge funds finished 2014 up 4.46%, with the Eurekahedge Hedge Fund Index gaining another 0.14%, outperforming underlying markets as the MSCI World Index fell 0.80% in December after equities retreated from their intra-month heights. Further steep falls in oil prices and fears of a global slowdown contributed to an atmosphere of uncertainty, which caused volatility to pick up in the final trading month of the year as the market traded in a choppy sideways manner.
January 2015 | Eurekahedge
Hedge funds rounded up the final month of 2014 in positive territory, up 0.14%, outperforming underlying markets as the MSCI World Index lost 0.80%. Global equity markets largely traded sideways to end December in negative territory, fuelled by further steep falls in oil prices and fears of a global slowdown. Volatility also picked up in the final trading month of the year amid the atmosphere of uncertainty - reflected in the CBOE VIX Index which rose 44.04% to 19.2 during the month of December. Most of the salient macroeconomic themes from November maintained their relevance going into December; mainly the fall in oil prices and the impact of divergent central bank policies.
January 2015 | Eurekahedge
Global hedge funds have maintained a steady pace of growth building upon the strong gains seen in 2013, with new investor allocation activity totalling US$40.8 billion in the first eleven months of 2014. Combined with excellent performance-based gains of US$76.5 billion delivered by hedge fund managers, this puts the current assets under management (AUM) of the industry at US$2.13 trillion – another new high.
January 2015 | Eurekahedge
India focused hedge funds have posted spectacular returns in 2014 against the backdrop of rising domestic equity markets, and a renewed sense of confidence in the Indian economy which is being led by Narendra Modi. Hedge funds investing with an Indian mandate have topped the performance tables in 2014 and in this special section of The Eurekahedge Report, we ask some of the top performing Indian hedge fund managers about their winning themes during the year, in addition to investor allocation activity and the key macroeconomic themes which they will be watching out for in 2015.
December 2014 | Eurekahedge
Hedge funds rebounded from the prior two months’ losses, finishing the month up 1.40% , underperforming underlying markets as the MSCI World Index gained 2.34%. Global equity markets extended their rally into November after the previous month’s v-shaped recovery, with investors piling back into risky assets as October’s fall was seen as a healthy correction after a lengthy period of rising prices. Investors remained in a buoyant mood about the markets, evidenced by the CBOE VIX Index falling 4.99% during the month, with strong gains in developed economies as well as emerging Asia.
December 2014 | Eurekahedge
The European hedge fund industry continues its recovery amid a difficult market environment with current assets under management (AUM) standing at US$487.9 billion overseen by a population of 3,949 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of global AUM was 24.9% which has since fallen to 22.9%. The total AUM of European hedge funds grew US$33.4 billion in 2014, largely on the back of new investor inflows, and is now 3.2% above its pre-crisis peak in 2007.
December 2014 | Eurekahedge
With 30 years of investment experience, 6 offices around Asia and approximately US$3.2 billion in total assets, Wong Kok Hoi, Founder & CIO at APS Asset Management, discusses the challenges and opportunities of investing in Asia.
Through this video interview, Wong Kok Hoi shares his investment philosophy, reasons attributed for strong performance during 2008 to 2009, the investment environment post-Madoff and the challenges hedge fund startups face in current times.
December 2014 | Robert Milner, James Mulholland, Daniel O’Connor Carey Olsen
A new exemption from the requirements of Jersey’s Financial Services (Jersey) Law 1998 (FS(J)L) has been introduced which will enable Jersey-regulated fund managers to service qualifying segregated managed accounts (QSMAs) without the need for further regulation in Jersey while continuing to benefit from Jersey’s 0% corporate income tax rate.
November 2014 | Eurekahedge
Hedge funds posted their sixth month of negative returns for the year, with the Eurekahedge Hedge Fund Index down 0.27%, underperforming underlying markets as the MSCI World Index climbed 1.15% after a major worldwide selloff and subsequent recovery. In the US, the Federal Reserve completed its tapering program this month and announced that it is still on track towards normalising interest rates given its inflation and employment targets. Over in Asia, the Bank of Japan (BoJ) surprised market participants by going all out to tackle deflation and embarking on further easing, driving the yen to new lows against the greenback while sparking off another rally in the Nikkei.
November 2014 | Eurekahedge
Hedge funds registered their second consecutive month of losses in October, closing the month down another 0.27%, underperforming underlying markets as the MSCI World Index gained 1.15% after a wild month. Concerns about global growth prospects amid a deflationary environment prompted a rise in investor risk aversion in the earlier half of October, sparking a global sell-off which drove the S&P 500 Index briefly into correction territory, with US 10-year treasury yields dipping below 2%. However, the market subsequently made a sharp recovery in the latter half of the month, lifted by a positive slew of economic data including strong corporate earnings and GDP numbers. Even as the Federal Reserve officially ended its quantitative easing programme this month, central banks elsewhere remain committed to tackling deflation. The ECB maintained its firm stance on an expansionary fiscal policy as growth and inflation in the region remained weak, while the Bank of Japan (BoJ) surprised financi
November 2014 | Eurekahedge
The Latin American hedge fund industry has continued to provide remarkable performance growth and diversification for hedge fund investors over the years, with the Eurekahedge Latin America Hedge Fund Index gaining 612.00% since its inception in December 1999, comfortably outperforming the MSCI Latin America Index in the past two years. 2013 in particular was a banner year for Latin American hedge funds which returned 1.73% while the benchmark index plummeted 7.93%. The total assets under management (AUM) of the industry currently stand at US$59.1 billion, managed by a total of 397 hedge funds.
November 2014 | Nicholas Lewis, McGuireWoods LLP
“It is difficult to overstate how much the regulatory landscape for hedge fund managers has changed over the past four years.” So said Norm Champ, director of the Securities and Exchange Commission’s Division of Investment Management, in a recent speech wherein he outlined how the SEC has built on its newfound authority to regulate private fund advisers, including by taking advantage of its increased access to information and new analytical tools. As we’ve previously discussed in this newsletter, since Dodd-Frank, most investment advisers to private funds, such as hedge funds, now have to register with the SEC, thus subjecting them to SEC oversight and regulatory requirements.
October 2014 | Eurekahedge
Hedge funds ended September flat with the Eurekahedge Hedge Fund Index returning 0.00%, outperforming underlying markets as the MSCI World Index slipped 1.86%, with market volatility picking up after the seasonal summer doldrums. In the US, investors are gearing up in earnest at the prospect of tighter monetary policy in the United States as the economic recovery continues to gain strength, with concerns continuing to remain regarding the pace of a rate rise given the mammoth challenge of unwinding the Fed’s balance sheet.
October 2014 | Eurekahedge
Hedge funds were marginally negative in September, closing the month down 0.05, outperforming underlying markets as the MSCI World Index fell 1.86% on concerns over the pacing of rate hikes in the US. The protests in Hong Kong towards the end of the month also weighed in on investor sentiment, adding further selling pressure to equity markets which were already jittery at the prospect of rising rates. September saw a sharp rise in investor risk aversion, resulting in a corresponding flight to safe assets while the CBOE VIX Index rose to 16.31 during the month.
October 2014 | Eurekahedge
North American hedge funds continued to record excellent growth for 2014 year-to-date, keeping up with the strong gains seen in 2013 which has raised the region’s share of assets under management (AUM) to approximately two-thirds of the global hedge fund industry. As at August 2014, the total AUM of the North American hedge fund industry has breached the US$1.4 trillion mark to stand at US$1.43 trillion managed by a total of 5,093 hedge funds.
October 2014 | Eurekahedge
Fund of hedge funds grew slightly during the year, with the Eurekahedge Fund of Funds Index gaining 2.59% in the first eight months of 2014, coming in behind single managers who returned 3.87%. Although the industry continues to face heavy redemption pressure, assets under management (AUM) of the industry saw a small recovery for 2014 year-to-date, with AUM climbing up to US$529.3 billion managed by a total of 3,122 funds.
October 2014 | Mark Leeds, Mayer Brown
It’s probably fair to speculate that there were significant numbers of tax aficionados (including the author of this article) among the audience for Ken Burns’ recent public television extravaganza on the Roosevelt dynasty. Unfortunately for this segment of the audience, the intersection of tax and FDR was not highlighted, with the passage of the Social Security Act receiving only scant mention. Social security taxes have risen dramatically since the enactment of the law.
September 2014 | Eurekahedge
Hedge funds ended August in positive territory with the Eurekahedge Hedge Fund Index up 1.30% trailing the MSCI World Index which gained 2.48%, with market volatility falling across the different asset classes. In the US, the economy continues to show modest growth, prompting more speculation regarding possible revisions to the schedule for the Fed’s eventual raising of interest rates. Over in the Eurozone, inflation and growth remains weak, spurring Draghi into action to fulfil his commitment towards fighting deflation. European equities rallied in anticipation of a fresh round of quantitative easing, with regional markets ending the month largely in positive territory.
September 2014 | Eurekahedge
Hedge funds rebounded strongly in August to close the month up 1.30%, trailing underlying markets as the MSCI World Index gained 2.48% on the back of modest growth figures which were driven largely by an improving outlook for the US economy. August witnessed another renewed wave of investor optimism which continued to push global equity markets higher and volatility back down.
September 2014 | Eurekahedge
UCITS, as defined by the EU, refers to the term ‘Undertakings for Collective Investment in Transferable Securities’. They arose out of calls for an increase in the regulatory oversight of alternative investment managers, setting strict standards in the areas of investor protection, regulation and disclosure. The regulatory bodies of the EU are continually updating and improving upon the product to maintain its relevance to investors, with the most recent UCITS V set of regulations to be implemented by 17 September 2014.
August 2014 | Eurekahedge
Hedge funds finished the month of July in the red with the Eurekahedge Hedge Fund Index down 0.10% (2.82% year-to-date), outperforming the MSCI World Index which declined 0.83% from rising geo-political tensions between Russia and the west, and concerns over Portugal’s banking sector weighed in on investor sentiment. Despite strong second quarter growth numbers in the US, anxiety continues to grow regarding the timing for the Fed’s abandonment of its zero-interest-rate policy following dissenting opinions on the issue in the recent FOMC meeting. Asian markets evaded the overall negative sentiment as healthy macro-economic numbers from China gave a boost to regional equity markets with Asian mandated hedge funds ending July on a strong note.
August 2014 | Eurekahedge
Hedge funds edged lower to close 0.10% down by the end of July, following underlying markets as the MSCI World Index lost 0.83% during the same period. Equity markets around the world saw mixed gains, with the strongest performers being Asia Pacific and Latin America while North America and Europe suffered losses. North American and European stock indices actually traded higher during July despite rising geo-political tensions between Russia and the west before taking a steep dive in the closing week, finally giving way as a slew of international crises weighed in on investor sentiment, including but not limited to: Israel’s strikes on Gaza, Portuguese bank bailout, trade sanctions against Russia and the Ebola epidemic in Africa. Meanwhile in the US, strong second quarter growth numbers continue to create increasing anxiety regarding the timing for the Fed’s abandonment of its zero-interest-rate policy, with the US dollar appreciating sharply on the back of the stronger economy and exp
August 2014 | Eurekahedge
Global hedge funds have maintained a level of growth comparable with the strong gains seen in 2013, with robust allocation activity totalling US$65.3 billion in the first half of 2014. Combined with excellent performance-based gains of US$40.3 billion delivered by hedge fund managers this puts the current assets under management (AUM) of the industry at a new high of US$2.12 trillion. The global hedge fund population now stands at 10,844 funds strong as at June 2014.
August 2014 | Nicholas Lewis, McGuireWoods LLP
In a recent speech to the Practising Law Institute’s Private Equity Forum, Norm Champ, Director of the SEC’s Division of Investment Management, discussed the SEC’s increasing attention to the growth in ‘alternative mutual funds’, or open-end mutual funds that feature investment strategies more typically seen in private funds. Similar to recent speeches and discussions related to the SEC’s oversight of hedge funds, previously discussed in this newsletter last November, Champ’s speech contained useful guidance about the types of risks the SEC is monitoring in the alternative mutual fund space, but it also conveyed that the SEC will be ramping up inspection into whether investment advisers to these funds are fully complying with their duties.
August 2014 | Martin Mankabady, Clyde & Co
The World Cup was fantastic and surpassed all expectations. It is a shame that England could not also have surpassed expectations. Amidst all the coverage of the event, there was one interesting article in the press, which did not cover the usual ground of match reports, injury updates and post-mortems of England’s or Brazil’s performance – it was an article on how hedge funds are investing in the football sector and will continue to do so. The interest generated by the World Cup is only likely to whet the appetite of such investors even further.
July 2014 | Eurekahedge
Hedge funds ended June in positive territory with the Eurekahedge Hedge Fund Index up 1.25% and ended the second quarter of the year on a stronger note. On a year-to-date basis, hedge funds are up 3.00% while the MSCI World Index has returned 4.27% in the first half of 2014. Global markets were supported by accommodative monetary policies in June and steady gains in the US jobs market data, with the ECB initiating negative rates on bank deposits and indicating that unconventional monetary policy tools were still in reserve should the mild recovery in Eurozone falter.
July 2014 | Eurekahedge
Hedge funds followed global equity markets higher to close 1.25% up by the end of June, with the Eurekahedge Hedge Fund Index reaching another new high during the month. Global equity markets saw another month of broad-based gains in June, with the strongest performers being Asia Pacific and Latin America for the emerging economies and North America for developed economies. Central bank policy remains one of supporting economic recovery, with the Fed continuing to reaffirm its stance on keeping interest rates low ‘for a considerable time’ after the end of tapering, while the ECB initiated negative rates on bank deposits in an unconventional move to raise inflation to target levels. While tensions in Ukraine appear to be easing, instability has begun brewing again in the Middle East, threatening to disrupt global oil supplies.
July 2014 | Eurekahedge
The Asian hedge fund industry struggled to duplicate their previous year’s outstanding performance amid a more volatile market environment, gaining only 0.31% but outperforming underlying regional markets by over 2% as at May 2014 year-to-date. Total assets under management (AUM) increased by US$5.2 billion during the same period, largely supported by fresh investor inflows, bringing the total size of the Asia hedge fund industry to US$152.8 billion managed by a population of 1,357 hedge funds.
July 2014 | Mark D. Gerstein, Bradley C. Faris, Timothy P. FitzSimons and John M. Newell, Latham & Watkins LLP
Increasingly, some activist hedge funds are looking to sell their stock positions back to target companies. How should the board respond to hushmail?
June 2014 | Eurekahedge
Hedge funds ended May in positive territory with the Eurekahedge Hedge Fund Index up 1.12% as global markets showed signs of stabilisation following a choppy start to the year. Moderate levels of global economic activity coupled with a supportive monetary policy outlook led to a pro-risk environment in May which saw equities and bonds appreciate while volatility levels subsided.
June 2014 | Eurekahedge
Hedge funds rebounded strongly in May following April’s and March’s losses to finish the month up 1.12%, with the Eurekahedge Hedge Fund Index reaching new heights during the month. Global markets trended upwards as the Fed reiterated its dovish stance on keeping long term interest rates low in order to sustain an ongoing recovery in the US economy after GDP figures showed that the US economy had contracted in Q1 2014. Similar support built up in the Eurozone region where market participants expected the ECB to ease its monetary policy to stave of deflation worries, an expectation that was correctly realised when the ‘Draghi put’ was officially executed earlier this month in the form of negative interest rates on bank deposits.
June 2014 | Eurekahedge
The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years with the Eurekahedge Latin America Hedge Fund Index up 14.5% on an annualised basis since December 1999 and total assets under management (AUM) of the industry currently standing at US$60.8 billion. Since the start of the new millennium the Latin American hedge fund industry has witnessed tremendous growth, both in terms of number of funds and AUM.
June 2014 | Eurekahedge
Gávea Investimentos was founded in 2003 by Arminio Fraga Neto, former Governor of the Central Bank of Brazil and former Managing Director at the Soros Fund and Luiz Henrique Fraga, former President of Latinvest Asset Management. The firm started with the launch of a Global Macro hedge fund with a focus on Emerging Markets. As the business successfully evolved, clients expressed the desire for investing in private equity in Brazil using our expertise. We then established in 2006 our Private Equity line of business which, as of May 2014, has completed 45 investments and 23 successful exits. Over the last three years, we have added two new lines of business that have been consistently expanding: Public Equities and Real Estate
June 2014 | Eurekahedge
Eurekahedge was commissioned by AIMA (Japan) to conduct a survey of Japanese investors. The survey itself was conducted from end of March to April 2014 to gauge important insights into market sentiment, investment trends and key regulatory challenges facing the Asian asset management industry, with a particular emphasis on the outlook for Japan. The key findings from this survey are presented in this paper based on responses submitted by a total of 131 survey participants. As for the investment advisors who participated in the Survey, they are collectively advising and/or managing assets in excess of US$3.8 trillion.
May 2014 | Eurekahedge
Hedge funds posted their second consecutive month of negative returns in April with the Eurekahedge Hedge Fund Index down 0.13% as global markets continued to falter amid a sluggish start to the year. On a year-to-date basis, hedge funds are up 0.78%, slightly ahead of the MSCI World Index which returned 0.75% in the first four months of the year.
May 2014 | Eurekahedge
Hedge funds have been in negative territory for three out of four months this year, losing an additional 0.13% in April following the losses from March. They are still up 0.78% for the year, slightly beating the MSCI World Index which gained 0.75% during the same period. The two largest central banks in the world jittered global markets as they deliberated on monetary policy. In April, the Fed meeting clarified that with inflation still low and sluggish growth in the US, it would be a considerable period of time before the first interest rate hike, even while asset purchases continued to taper.
May 2014 | Eurekahedge
Funds of hedge funds had a sluggish start to the year, with the Eurekahedge Fund of Funds Index gaining 0.53% in the first quarter of 2014. They enjoyed somewhat better performance during the previous year in which they reported gains of 8.15%, outperforming single managers who gained 8.07% collectively in 2013 with a higher risk factor. Although the industry continues to face heavy redemption pressure, assets under management (AUM) of the industry saw some respite in the first quarter of 2014, with AUM holding steady at US$524.5 billion managed by a total of 3,145 funds.
May 2014 | Irfan A Naheem, Infinity Consultants
Hedge funds are a touchy subject in Islamic finance, with scholars widely disagreeing about the Shariah compliance of various strategies. Irfan A Naheem talks us through the key concepts and controversies.
April 2014 | Eurekahedge
Hedge funds sealed the first quarter of the year with another month of negative returns, down 0.35% in March as managers navigated through a choppy start to the year. However, strong returns posted by fund managers in the previous month saw them through with the Eurekahedge Hedge Fund Index up 0.87% in Q1 2014, outperforming the MSCI World Index which has gained 0.67% over the same period.
April 2014 | Eurekahedge
Hedge funds hit another rough patch as the first quarter of 2014 drew to a close, giving back part of their February gains to finish the month down 0.35%, with the MSCI World Index returning a flat 0.04% during the month. Global markets remained largely flat-to-negative during the month as better than expected US jobs data and the reduction of the Fed’s monthly asset purchase program by another US$10 billion heightened concerns that US interest rates could rise faster than previously anticipated.
April 2014 | Eurekahedge
The European hedge fund industry continued its recovery amid a difficult market environment with current assets under management (AUM) standing at US$461.7 billion overseen by a population of 3,988 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of Global AUM was 24.9%, which has since fallen to 22.7%. The Eurekahedge European Hedge Fund Index gained 8.39% over the past 12 months, with total AUM of European hedge funds growing US$83.5 billion during the same period, bringing it close to their 2007 high.
March 2014 | Eurekahedge
Hedge funds posted a strong rebound in February with the Eurekahedge Hedge Fund Index up 1.79% as underlying markets rallied with the MSCI World Index gaining 3.87% during the month.
Final asset flow figures for January revealed that managers incurred performance-based losses of US$4.5 billion while recording net asset outflows of US$1.7 billion as hedge funds got off to a rough start in 2014. Preliminary data for February shows that managers have posted performance-based gains of US$14.8 billion while net asset inflows stand at US$11.0 billion, bringing the current assets under management (AUM) of the industry to US$2.03 trillion – the highest level on record.
March 2014 | Eurekahedge
Hedge funds bounced off the lows in January to finish the month up 1.79% as global equity markets recovered with the MSCI World Index gaining 3.87% during the month. Market sentiment held strong as weaknesses in recent US macroeconomic data were largely attributed to the weather conditions, with Fed chair Janet Yellen reaffirming the need to keep the QE tapering on track as the US economy continues its recovery. Emerging markets also showed signs of stability with the MSCI Emerging Market Index rising 2.15% during the month. Positive macroeconomic data from the Eurozone showed acceleration in manufacturing activity which provided further support to the markets, while tensions surfacing in Crimea towards the month end failed to dampen investor sentiment.
March 2014 | Gareth Pyburn, InsightLegal Asia Consulting
There continues to be great interest in and steady growth of hedge funds in APAC, which is driven by both market and regulatory factors. Hong Kong and Singapore remain the two most competitive jurisdictions in terms of attracting funds and fund managers; however, each has its own particular strengths and disadvantages. InsightLegal Asia Consulting specialises in ‘clarifying complexity’ and below we provide some guidance on how regulatory initiatives in Asia-Pacific are affecting the development of different types of fund and hedge fund structures in APAC.
February 2014 | Eurekahedge
Hedge funds started off the year against the backdrop of a difficult market setting as concerns over the health of the global economic recovery resurfaced; aided by disappointing PMI numbers from China and a deteriorating situation in emerging economies as the ‘QE withdrawal symptoms’ began to manifest themselves yet again. The Eurekahedge Hedge Fund Index was down 0.48% during the month, outperforming underlying markets as the MSCI World Index declined 3.74% in January.
February 2014 | Eurekahedge
Hedge funds were down 0.48% in January, outperforming underlying markets as the MSCI World Index declined 3.74% during the month with global markets off to a bumpy start in 2014. Global markets trended downwards during the month led by weak US jobs data and discouraging PMI numbers from China. Market sentiment weakened further towards the month-end as the Fed announced another round of QE trimming which catalysed investor flight from emerging economies and led credence to concerns regarding the health of the global economic recovery. Emerging market currencies also came under sharp selling pressure with markets watching carefully as the global economy transitions to a post-QE world.
February 2014 | Eurekahedge
The Asian hedge fund industry delivered excellent performance in 2013, beating underlying markets and outperforming its global peers during the year. The Eurekahedge Asia Hedge Fund Index gained 16.10% in 2013 with the total assets under management (AUM) increasing by US$20.6 billion. This brings the total size of the Asian hedge fund industry to US$147.0 billion managed by a population of 1,333 hedge funds.
January 2014 | Eurekahedge
Hedge funds witnessed their fourth consecutive month of positive returns as global markets ended the year on a strong note of optimism. The Eurekahedge Hedge Fund Index was up 0.98% during the month, bringing its 2013 returns to 8.02%. Global markets welcomed outgoing Fed chairman Ben Bernanke’s commitment to a low interest rate regime in the post-QE tapering environment with the MSCI World Index gaining 1.67% in December.
January 2014 | Eurekahedge
Hedge funds delivered their fourth consecutive month of positive returns as global markets ended the year on a positive note. The Eurekahedge Hedge Fund Index was up 0.98% during the month while the MSCI World Index gained 1.67% in December.
Global markets digested the news of the much awaited QE tapering as the Fed reiterated its resolve to keep interest rates low in order to sustain a continued recovery in the US economy. While North American and European markets edged upwards on the news, emerging market fears over capital outflows resurfaced with the MSCI Emerging Markets Index declining 0.93% during the month. Asian markets were mixed during the month as tightening liquidity in mainland China coupled with a decline in the country’s PMI gauge dampened investor sentiment.
January 2014 | Eurekahedge
Global hedge funds have had a good run in 2013, with the industry attracting net asset flows of US$127.4 billion in the first 11 months of the year. This robust allocation activity, combined with excellent performance-based gains of US$85.6 billion delivered by hedge fund managers puts the current assets under management (AUM) of the industry at US$1.99 trillion.
January 2014 | Bryan G. Petkanics and Paul W.A. Severin, Loeb & Loeb LLP
Loans secured by interests in hedge funds and, to a lesser extent, private equity funds have been a staple of many banks’ credit offerings for years. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, H.R. 4173) (Dodd-Frank) in general, and the part thereof known as ‘the Volcker Rule’ in particular, have raised a basic question: “Can a banking institution subject to the Volcker Rule (which is virtually every banking institution in the U.S.) continue to make and enforce hedge fund and private equity fund secured loans?”
January 2014 | Sarah Bowles, Darren Fox, Rolfe Hayden and Gaven Cheong, Simmons & Simmons
The European Union Directive on Alternative Investment Fund Managers (Directive 2011/61/EU) (AIFMD) was required to be implemented into the national laws of the 28 Member States of the European Union (EU) by 22 July 2013 and also into the national laws of the three additional European Economic Area (EEA) states (Norway, Iceland and Liechtenstein) by a date to be determined. On 19 December 2012, the European Commission (the Commission) published a delegated regulation supplementing AIFMD (the Level 2 Regulation), which sets out further detail around certain other provisions in AIFMD and is directly applicable in the Member States without the need for implementation.
December 2013 | Eurekahedge
Hedge fund returns were up for the third consecutive month as markets remained upbeat following encouraging job creation data from the US, with Janet Yellen’s dovish sentiments regarding the short-term continuation of the Fed’s QE program giving a further leg up to investor sentiment. The Eurekahedge Hedge Fund Index was up 1.31% during the month, bringing its year-to-date (YTD) return to 7.34%. The MSCI World Index gained 1.27% during the month.
December 2013 | Eurekahedge
Hedge funds delivered their third consecutive month of positive returns as global markets maintained their upward momentum. The Eurekahedge Hedge Fund Index was up 1.31% during the month, edging past the MSCI World Index which gained 1.27% in November.
December 2013 | Eurekahedge
The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years with the Eurekahedge Latin America Hedge Fund Index up 15.0% on an annualised basis since December 1999 and the total assets under management (AUM) of the industry currently standing at US$61.3 billion.
November 2013 | Eurekahedge
Hedge fund returns were up for the second consecutive month in October amid trend reversals in the underlying markets. The Eurekahedge Hedge Fund Index was up 1.41% during the month, bringing its year-to-date return to 5.84%. The MSCI World Index gained 3.75% during the month.
November 2013 | Eurekahedge
Hedge funds delivered healthy gains in October as global markets trended upwards during the month. The Eurekahedge Hedge Fund Index was up 1.41% during the month, while global stock indices outperformed as the MSCI World Index gained 3.75% in October.
November 2013 | Eurekahedge
Funds of hedge funds have had a positive year so far in 2013 with the Eurekahedge Fund of Funds Index gaining 4.18% at September year-to-date, and outperforming the benchmark Eurekahedge Hedge Fund Index in five out of the first nine months of the year. While a rebound in market sentiment has helped multi-managers post performance-based gains, their return to historical highs continues to be undermined by the trend of negative asset flows in the industry which were recorded at US$67.3 billion as at end-September 2013.
November 2013 | Nicholas Lewis, McGuireWoods LLP
In a recent speech before the Managed Funds Association, U.S. Securities & Exchange Commission (SEC) Chair Mary Jo White discussed what she called a “new era of transparency and openness” for the private funds industry, including hedge funds. Her address largely provided an overview of two significant pieces of legislation, namely, the Dodd-Frank Act, which among other things requires most hedge fund advisers to register with the SEC, and the JOBS Act, which lifted the longstanding ban on solicitation in connection with certain private securities offerings.
November 2013 | Ronald M. Kosonic and Sarah K. Gardiner, Borden Ladner Gervais
Canada, in keeping with the rest of the world, has seen unprecedented change in the regulation of the financial markets over the past five years – not only in scope and detail, but also in speed of implementation. At the same time, regulators have stepped up their oversight with both broad-based and targeted compliance audits, resulting in the need for financial services participants to place an increasing focus on compliance.
October 2013 | Eurekahedge
Hedge funds were back in the black in September amid rallies in the underlying markets. The Eurekahedge Hedge Fund Index was up 1.18% during the month as global markets trended upwards, war in the Middle East was averted and the US Federal Reserve did not announce the speculated tapering of its asset purchase program. The MSCI World Index gained 3.87% during the month.
October 2013 | Eurekahedge
Hedge funds realised gains in September as global markets trended upwards during the month. The Eurekahedge Hedge Fund Index was up 1.18% while global stock indices outperformed as the MSCI World Index gained 3.87% in September.
October 2013 | Eurekahedge
The European hedge fund industry continued its recovery amid a difficult market environment with its current assets under management (AUM) standing at US$407.8 billion overseen by a population of 3,900 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of global AUM was almost 25% and currently it still remains below that level at 21.4%.
September 2013 | Eurekahedge
Hedge funds posted slightly negative returns in August, amid increasing risk aversion in the markets. The Eurekahedge Hedge Fund Index was down 0.23% during the month as global markets reverted to ‘risk-off’ mode amid fears of another war in the Middle East and speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index was down by 2.26 % during the month.
September 2013 | Eurekahedge
Hedge funds witnessed slightly negative returns in August amid increased risk aversion in global markets during the month. The Eurekahedge Hedge Fund Index was down 0.23% outperforming global stock indices as the MSCI World Index declined by 2.26% in August.
September 2013 | Eurekahedge
Against the backdrop of an increasingly uncertain regional macroeconomic situation, the Asian hedge fund industry has shown remarkable resilience in 2013. The Eurekahedge Asia Hedge Fund Index is up 7.77% July year-to-date, with the total assets under management (AUM) of the industry currently standing at US$139.0 billion managed by a population of 1,303 hedge funds.
August 2013 | Eurekahedge
Hedge funds were back in the black in July as global markets swung upwards on the back of reassuring announcements from the US and European central banks. The Eurekahedge Hedge Fund Index gained 1.02% during the month bringing its year-to-date return to 3.54%. The MSCI World Index was up by 4.41% during the month.
August 2013 | Eurekahedge
Hedge funds returned to their winning ways in July as global markets bounced back from a retreat in June amid positive announcements by central banks. The Eurekahedge Hedge Fund Index was up 1.02% during the month and the MSCI World Index was up by 4.83% in July.
August 2013 | Eurekahedge
The North American hedge funds industry has witnessed robust growth in 2013 with the total assets under management (AUM) breaching the US$1.3 trillion mark for the first time in May, raising the region’s share of global AUM to almost 70%. With strong launch activity since 2009, the total fund population has also reached the highest level on record with the total number of funds standing at 4891.
August 2013 | Sean Dailey, Chadbourne & Parke LLP
A typical “master-feeder” private investment funds structure uses a combination of corporate entities, including companies, limited partnerships and/or limited liability companies. Investment managers should consider the consequences associated with choosing one form instead of another early in the structuring process.
July 2013 | Eurekahedge
Hedge funds witnessed negative returns in June, bringing an end to their seven month winning streak since November 2012. The Eurekahedge Hedge Fund Index was down 1.45% during the month as global markets reverted to ‘risk-off’ mode amid speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index was down by 3.10 % during the month.
July 2013 | Eurekahedge
Hedge funds recorded negative returns in June ending their seven month winning run, as global markets witnessed broad based declines during the month. The Eurekahedge Hedge Fund Index was down 1.45% in June, outperforming most major underlying markets as the MSCI AC World Index declined 3.10%.
July 2013 | Eurekahedge
After witnessing excellent performance-based gains in 2012, hedge funds continued the momentum in 2013 while also witnessing allocations from investors. The industry has attracted net asset inflows of US$56.9 billion during the first five months of 2013 in stark comparison to last year which saw net outflows of US$3.8 billion over the course of 12 months. The robust allocation activity along with continued positive performance has brought the AUM of the industry to US$1.88 trillion as at end-May 2013.
July 2013 | Catherine Fitzsimons, Walkers Ireland
The hedge fund landscape changed dramatically in 2008 with assets under management in severe decline, the imposition of redemption gates, NAV suspensions and general restrictions on investor withdrawals being imposed on a scale that was previously unseen. As Lord Turner, Chairman of the UK Financial Services Regulatory Authority, noted, although specific national banking crises in the past have been more severe, none have had the global impact of the 2008 financial crisis.
June 2013 | Eurekahedge
Eurekahedge Asian Hedge Fund Awards 2013
June 2013 | Eurekahedge
Hedge funds witnessed negative returns in June, bringing an end to their seven month winning streak since November 2012. The Eurekahedge Hedge Fund Index was down 1.45% during the month as global markets reverted to ‘risk-off’ mode amid speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index was down by 3.10% during the month.
June 2013 | Eurekahedge
Hedge funds witnessed the seventh consecutive month of positive returns in May amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.32% during the month, while the MSCI World Index declined by 0.45% in May.
June 2013 | Eurekahedge
The European hedge fund industry has witnessed significant trends over the last 13 years, starting with a period of strong growth, a broad-based decline in the industry and a recovery phase. In 2000 there were less than 500 European hedge funds with total assets under management (AUM) of US$39 billion. Over the next seven years the total number of funds increased tremendously to cross the 3,000 mark while AUM increased nearly twelvefold to reach a maximum of US$472.8 billion by October 2007.
June 2013 | Eurekahedge
RICE Charity Auction 2013
May 2013 | Eurekahedge
Hedge funds witnessed another month of positive returns in April amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.87% during the month, witnessing some trend reversals in the underlying markets. The MSCI World Index gained 2.02% during the month.
May 2013 | Eurekahedge
Hedge funds posted positive returns in April continuing their consecutive sixth month streak. The Eurekahedge Hedge Fund Index was up 0.87% during the month as most markets trended upwards. The MSCI World Index gained 2.02% in April.
May 2013 | Eurekahedge
Since the start of the new millennium the Latin American hedge fund industry has witnessed tremendous growth, both in terms of number of funds and assets under management (AUM). During this time the total number of funds in the industry has increased from just over 100 to nearly 500 – an increase of 500% in the fund population, while AUM has witnessed even more impressive growth. As at end-2000 total AUM in Latin American hedge funds stood at US$2.6 billion, while this figure stands at US$62.3 billion as at end-March 2013.
April 2013 | Eurekahedge
Hedge funds posted positive returns in March amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.69% during the month as some risk aversion returned to the markets due to developments in Europe. Comparatively the MSCI World Index gained 1.76% during the month.
April 2013 | Eurekahedge
Hedge funds were up for the fifth consecutive month in March, a month that saw mixed returns in underlying market indices. The Eurekahedge Hedge Fund Index was up 0.69% during the month while the MSCI World Index finished with gains of 1.76%.
April 2013 | Eurekahedge
Funds of hedge funds started 2013 on a positive note amid renewed risk appetite in global markets. The Eurekahedge Fund of Funds Index was up 2.19% in the first two months of the year as underlying single managers witnessed strong returns on the back of rallying global markets. On the flipside, the trend of net negative flows continued from previous years as multi-managers saw net outflows of more than US$25 billion.
April 2013 | Eurekahedge
The UCITS hedge funds industry has witnessed tremendous growth over the last four years, both in the number of funds and in assets under management (AUM). As at the start of 2013 the total number of funds in the industry is estimated at 949 with AUM standing at US$215 billion.
March 2013 | Eurekahedge
Hedge funds posted marginally positive returns in February amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.22% during the month as some risk aversion returned to the markets due to political and economic developments in Europe. The MSCI World Index was down by 0.07% during the month.
March 2013 | Eurekahedge
After a strong showing in January on the back of resurgent risk appetite and rallying markets, hedge funds delivered a more muted performance in February as risk aversion increased during the month. The Eurekahedge Hedge Fund Index was up 0.22% during the month, outperforming the underlying markets which finished in negative territory. The MSCI World Index was down 0.07% in February.
March 2013 | Eurekahedge
Hedge funds started off 2013 in a strong fashion with the industry delivering excellent returns and also attracting capital from investors. Currently the size of the industry stands at US$1.8 trillion and is set to hit its historical high in coming months.
March 2013 | Philip Graham, Harneys
As a new ‘regulation light’ fund manager regime is launched in the British Virgin Islands, eligible fund managers can now count on a simpler application process. Philip Graham of Harneys provides an update.
February 2013 | Eurekahedge
Hedge funds started off 2013 in a positive fashion, posting excellent returns on the back of rallying markets globally. The Eurekahedge Hedge Fund Index was up 2.32% during the month, the strongest January return since 2006. Most underlying markets witnessed rallies as the MSCI World Index gained 4.66%.
February 2013 | Eurekahedge
Hedge funds posted excellent returns in January on the back of resurgent risk appetite and rallying equity markets globally. The Eurekahedge Hedge Fund Index was up 2.24% during the month, the strongest January return since 2006 while the MSCI World Index gained 4.66% in January. The capital weighted Mizuho-Eurekahedge Index was up 1.59%.
February 2013 | Eurekahedge
The Asian hedge fund industry started 2013 on much firmer ground than compared to previous years. The Eurekahedge Hedge Fund Index gained 9.79% in 2012 and total assets under management (AUM) in the industry were up during the year – currently standing at US$127.4 billion. The industry witnessed some tough times and fickle fortune since the financial crisis and over the last five years the sector has faced numerous challenges.
January 2013 | Eurekahedge
Hedge funds finished 2012 on a high note as global markets rallied at the year-end and many managers were able to capture the upside on offer. The Eurekahedge Hedge Fund Index was up 1.46% during the month, ending the year at a healthy 6.19%. Comparatively the MSCI World Index gained 2.22% during the month.
January 2013 | Eurekahedge
Hedge funds ended 2012 on a positive note and posted substantial gains across all regional and strategic mandates in December. The Eurekahedge Hedge Fund Index was up 1.46% during the month, bringing the 2012 yearly return to 6.19%. Comparatively the MSCI World Index gained 2.22%during the month and 13.55% in 2012. The capital-weighted Mizuho-Eurekahedge Top100 Index, which tracks the assets and performance of the largest 100 hedge funds, gained 6.20% in 2012.
January 2013 | Eurekahedge
Over the last few years North American hedge funds have delivered a remarkable recovery from the global financial crisis, both in terms of assets under management (AUM) and performance. The industry has stood apart from hedge funds in other regions by attracting the greatest amount of assets since 2008 and also delivering four years of positive returns
December 2012 | Eurekahedge
Hedge funds witnessed a month of healthy returns and positive asset flows in November as the prevailing sentiment turned towards the risk-on mode. The Eurekahedge Hedge Fund Index was up 0.42% as most underlying markets witnessed trend reversals in the middle of the month. Comparatively, the MSCI World Index was up by 1.05% during the month.
Total assets under management (AUM) increased by US$7.7 billion during the month, bringing the size of the industry to US$1.77 trillion. Hedge funds posted performance-based gains of US$1.8 billion as most strategies were in the black in November. Net positive asset flows were also witnessed as investors allocated net US$5.9 billion to the industry.
December 2012 | Eurekahedge
Hedge funds finished November in the black with marginal gains amid an environment of heightened volatility during the first half of the month, and trend reversals across many sectors in the last two weeks. The Eurekahedge Hedge Fund Index was up 0.42% in November bringing its year-to-date (YTD) figure to 4.39%.
December 2012 | Eurekahedge
The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years and the Eurekahedge Latin American Hedge Fund Index has delivered impressive annualised returns of 15.62% since December 1999. Since the financial crisis of 2008, the industry has also posted a remarkable recovery in terms of assets and the total number of funds in the region.
November 2012 | Eurekahedge
Hedge funds ended their winning run in October with flat-to-slightly-negative returns for the month. The Eurekahedge Hedge Fund Index was down 0.19%1 during the month bringing its October year-to-date (YTD) return to 4.11%. The month witnessed a difficult trading environment for hedge funds as underlying markets witnessed trend reversals across a variety of sectors. The MSCI World Index2 dropped by 0.76% in October.
November 2012 | Eurekahedge
Hedge funds delivered flat to marginally negative returns during October, ending their three month winning streak. October witnessed the Eurekahedge Hedge Fund Index down by 0.19%1 with the year-to-date (YTD) return for the index standing at 4.11% and the MSCI World Index2dropping by 0.76%.
November 2012 | Eurekahedge
The last ten years have witnessed significant trends in growth and performance within the funds of hedge funds industry. At the start of 2002 the industry consisted of approximately 1,000 funds with assets of less than US$100 billion. Over the next seven years the industry expanded at an incremental pace to reach its maximum size of US$826 billion by March 2008.
November 2012 | Ying White and Yin Ge, Clifford Chance
There is no comprehensive legal or universally accepted definition of ‘hedge funds’ in China. Generally, they share certain common characteristics, including: being privately offered; requiring investors to have a certain minimum net worth and/or level of financial sophistication; investing in equity securities, fixed income securities, derivatives, futures and other financial instruments; having a perpetual term; imposing liquidity restrictions on investors’ capital; pursuing absolute return rather than measuring investment performance in relation to a benchmark; compensating managers with incentive fees; allowing considerable flexibility in investment strategies; being highly leveraged; and being subject to limited regulatory supervision.
October 2012 | Eurekahedge
Hedge funds witnessed a month of healthy returns and positive asset flows in September as the prevailing sentiment remained in the risk-on mode. The Eurekahedge Hedge Fund Index was up 0.96%1 during the month while most underlying markets witnessed rallies on the back of monetary easing announcements by the ECB and the US Federal Reserve. The MSCI World Index was up by 2.29%2 during the month.
October 2012 | Eurekahedge
September was another winning month for hedge funds as the sector posted its third consecutive month of positive returns. The Eurekahedge Hedge Fund Index was up 0.96%1 in September and 2.59% for 3Q 2012 while September year-to-date the index is up 4.20%. Global markets rallied strongly during the month on the back of monetary easing steps taken by governments – the MSCI World Index was up by 2.29%2 during the month.
October 2012 | Eurekahedge
European hedge funds have witnessed a challenging investment environment over the last two years amid heightened volatility, recessionary pressures and concerns over the European sovereign debt situation. While facing increased regulations from governments, the industry also saw net redemptions by investors in 2011 and 2012. The region’s hedge funds have adapted to the changed landscape through implementing various changes and as of end-September 2012 the Eurekahedge European Hedge Fund Index remains in positive territory for the year with gains of 4.48%.
October 2012 | Nick Lawler, Intermarket Communications
In anticipation of the SEC’s final rulemaking on the JOBS Act, the hedge fund industry is preparing for what are expected to be landmark changes. With the elimination of the prohibition against general solicitation and advertising, hedge funds will now have the ability to openly communicate with investors and the broader public. But to what extent will these changes affect the way hedge funds currently do business? And who will these changes benefit? The industry seems to have taken a wait-and-see approach since the President signed the Act into law in April.
September 2012 | Eurekahedge
Hedge funds were up for the second month running in August, amid positive movements in underlying markets. The Eurekahedge Hedge Fund Index was up 0.63%1 during the month, bringing its year-to-date (YTD) return to a healthy 3.16%. Comparatively the MSCI World Index gained 1.64%2 on the back of increasing prospects of quantitative easing and positive US economic data – with its YTD gain standing at 7.79%.
September 2012 | Eurekahedge
Hedge funds posted another month of positive returns for August as the Eurekahedge Hedge Fund Index gained 0.63% during the month. Market sentiment was optimistic for most of the month with prospects for QE3 increasing, positive signals from the Euro zone and stronger US economic data. The MSCI World Index was up by 1.64%2in August.
September 2012 | Eurekahedge
Asian hedge funds have witnessed tough times since 2008 and have faced numerous challenges over the last two to three years. The industry saw tremendous growth between 2000 and 2007, with the number of funds increasing eight-fold and total assets under management (AUM) growing by nearly 800%. By end-2007 the size of the Asian hedge fund industry stood at US$176 billion managed by 1200 managers.
September 2012 | Anthony Murray, Murray LLP
Hedge funds are increasingly subject to international and local data protection regulations. The amount of personal data held by hedge funds and service providers continues to grow. As obligations to collect data increases with new regulations such as the U.S. Foreign Account Tax Compliance Act (FATCA), hedge fund managers and other service providers must pay attention to data protection laws and regulations.
September 2012 | Hannah M. Terhune, Capital Management Services Group
Creating a hedge fund to protect and manage your assets or the assets of others for a fee is a practical way to earn a living. Successful hedge funds continue to attract the wealthy, the working not-so-wealthy, businesses, and pension funds looking for better investment options. Despite recent law changes, the United States still offers a favourable environment for smaller hedge fund startups. The purpose of this article is to highlight key U.S. hedge fund development and planning issues of interest to hedge fund sponsors worldwide.
August 2012 | Eurekahedge
Hedge funds ended their longest losing streak since 2008 with positive returns of 1.10%1 in July as managers captured gains from trends across various asset classes. July saw the first month of positive returns since February and the Eurekahedge Hedge Fund Index remained in positive territory for the year – up 2.57% July year-to-date (YTD). In comparison the MSCI World Index was up 1.05%2in July and 5.47% for the year.
August 2012 | Eurekahedge
Hedge funds rebounded strongly in July after four months of negative returns – the Eurekahedge Hedge Fund Index rose 1.10%1 bringing its year-to-date (YTD) gain to a healthy 2.57%. The year’s performance has weathered European sovereign debt woes, tensions in the Middle East and the dominant risk aversion from a slowdown in the global economy. After the rally in July, managers may find themselves with a fresh perspective of global markets as they continue to work towards exceeding their high water marks and hit their return targets for the rest of the year.
August 2012 | Eurekahedge
Amid the uncertainty plaguing global markets and the broader financial industry, North American hedge funds have stood out as one of the few sectors that have witnessed growth and the industry maintains a healthy outlook for the future. Even among the global hedge fund industry North American managers have emerged stronger from the financial crisis of 2008 to 2009 with the number of funds at an all-time high and assets under management (AUM) touching historically high levels.
August 2012 | Effie Vasilopoulos, Joseph Chan and Scott Peterman, Sidley Austin
The Shanghai Municipal Government Financial Services Office (FSO) is preparing to launch the Qualified Domestic Limited Partner Program (QDLP), a pilot program that will permit qualifying foreign hedge funds to raise RMB-denominated funds in mainland China. Under current law, domestic investors are not permitted to invest in foreign hedge funds without certain government approvals that are difficult to secure. The new QDLP measures are significant in that they will, for the first time, open the China market to fundraising by foreign hedge fund managers. Following implementation, QDLP is expected to have a major impact on international fund managers that are interested in China’s sizeable institutional market.
July 2012 | Eurekahedge
Hedge fund returns for June were in the red for the fourth consecutive month making it the longest running losing streak for the industry since 2008. The Eurekahedge Hedge Fund Index was down by 0.14%1 during the month while comparatively the MSCI World Index was up 3.65%2 amid reversal in market trends and a month-end rally.
July 2012 | Eurekahedge
Hedge fund performance was flat to slightly negative in June as global markets witnessed several trend reversals during the month. The Eurekahedge Hedge Fund Index registered a marginal loss of 0.14%1 during the month, bringing its June year-to-date figure to 1.38%. In comparison the MSCI World Index was up 3.65%2 .
July 2012 | Eurekahedge
The global hedge fund industry has witnessed two distinct phases during the first half of 2012: two months of strong performance and positive asset flows, followed by four months of negative performances and net outflows. Currently the size of the industry stands at US$1.75 trillion, managed by over 10,000 funds.
July 2012 | Melvyn Teo, BNP Paribas Hedge Fund Centre
We survey the Asian hedge fund landscape and shed light on the size, investment region, strategy, and performance metrics of funds operating in Asia.
June 2012 | Eurekahedge
Hedge funds were down in May amid heightened risk aversion and falling global markets. The Eurekahedge Hedge Fund Index lost 1.55% during the month while comparatively the MSCI World Index shed1 9.32% amid broad market declines in all regions.
June 2012 | Eurekahedge
Hedge funds witnessed their third consecutive month of negative returns in May as global markets registered large declines during the month. The Eurekahedge Hedge Fund Index dropped 1.55% in May but remained in positive territory for the year, up 1.91% May YTD. Comparatively the MSCI World Index shed 9.32% in the same month.
June 2012 | Eurekahedge
Among all the regions in the global hedge fund industry, Europe has witnessed the most dramatic changes over the last five years. At the start of the new millennium the total assets under management (AUM) in the industry were only US$39 billion. Over the next seven years this figure increased nearly twelvefold to reach a maximum of US$472.8 billion by October 2007, while the number of funds also crossed the 3,000 mark by this time.
June 2012 | Eurekahedge
Fortress Investment Group manages US$47 billion in variety of strategies, primarily focused on alternatives. Two hedge fund strategies – Fortress Asia Macro Fund and Fortress Convex Asia Funds are run out of Singapore.
June 2012 | Michael C. Mulitz, Daniel J. Hartnett, Willys H. Schneider and Dr. Thomas A. Jesch, LL.M., Kaye Scholer
According to the Federal Aviation Administration’s ? ‘FAA Aerospace Forecast (Fiscal Years 2011–2031),’ the commercial air carrier industry will grow by a remarkable 3.7% over the next five years. System capacity in available seat miles – the overall yardstick for how busy aviation is on a global scale – will increase 4.5% in 2011 and is expected by the FAA to grow thereafter at an average annual rate of 3.6% through 2031.
May 2012 | Eurekahedge
The Eurekahedge Asian Hedge Fund Awards 2012 took place on 25th May 2012, marking another year of success as Eurekahedge celebrated the best of the Asian hedge fund industry. With 320 hedge fund players in attendance, Eurekahedge gave credit to the top achievers of 2011 and 1Q 2012 and were pleased to welcome many new faces among this year’s event.
May 2012 | Eurekahedge
RICE Charity Auction 2012
May 2012 | Eurekahedge
Eurekahedge and the RICE fund are collaborating once more in 2012 to promote efforts in supporting the wellbeing of children throughout Asia via educational programs, shelter initiatives and healthcare provision.
The RICE fund was started in 2006 by a small group of enthusiastic people from the Asian hedge fund world. Our vision was to share the success of our industry, supporting children - and children’s educational projects - within the region. Since September 2010, RICE has been registered as an International Charitable Organization (ICO) in Singapore. RICE became officially registered as a Hong Kong charity in 2011.
May 2012 | Eurekahedge
Hedge fund returns were flat to slightly negative in April as most regions and strategies witnessed marginal movements during the month. As managers provided downturn protection amid declining markets globally, the Eurekahedge Hedge Fund Index was down 0.17%1and the MSCI World Index declined 1.62%.
May 2012 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.17%1 in April; a month that saw risk-aversion return to global markets. Most regional mandates provided downside protection to their investors and outperformed the underlying market indices with the average hedge fund manager finishing the month ahead by 1.45%. The MSCI World Index declined 1.62%2 during the month.
May 2012 | Eurekahedge
Amid an environment of increasing uncertainty in the markets, the Latin American hedge fund space has provided investors with continued growth and consistent performance. Since its inception in December 1999 the Eurekahedge Latin American Hedge Fund Index has gained 538.22%. The sector has also witnessed tremendous expansion in terms of fund population and assets under management (AUM). Over the last 12 years the number of managers increased from just over a hundred in 2000 to 480 as at end-March 2012, while AUM increased from US$2.7 billion to US$58.9 billion in the same time period.
May 2012 | Scott R. MacLeod, James S. Crenshaw, Christopher P. McHugh and Amy R. Rigdon, Holland & Knight
In early April 2012, President Obama signed into law two separate acts that will have a profound effect on hedge funds. The implications of these two new laws, the JOBS Act and the STOCK Act, are discussed below.
The JOBS Act: allows advertising in hedge fund offerings and increases the permitted number of investors in certain funds
April 2012 | Eurekahedge
Hedge funds delivered a flat-to-marginally negative performance in March as the Eurekahedge Hedge Fund Index dropped 0.18%1 for the month. Global markets witnessed divergent trends as US economic data continued to be positive, although Europe and Asia saw some declines and the MSCI World Index gained 0.39%
April 2012 | Eurekahedge
After witnessing the best start to a year since 2000, in terms of performance, hedge funds paused for a breather in March 2012, delivering a marginally negative performance. With the exception of the US, most markets across the globe registered declines and the Eurekahedge Hedge Fund Index dipped 0.18%1 in March with the MSCI World Index up by 0.39% in March.
April 2012 | Eurekahedge
Funds of hedge funds started 2012 on a positive note witnessing the strongest January to February performance in six years. The Eurekahedge Funds of Hedge Funds Index was up 3% in the first two months of the year as underlying single managers delivered their best start to a year since 2000. On the flipside, the trend of net negative flows continued from 2010 and 2011 as multi-managers saw net outflows of over US$20 billion.
April 2012 | Eurekahedge
UCITS hedge funds have witnessed significant growth since 2007 as managers have continued to attract investment interest from insurance companies, pension funds and other institutional investors. As illustrated in figure 1, assets in UCITS compliant hedge funds have expanded nearly threefold with 912 managers overseeing US$190 billion of capital as at end-February 2012.
April 2012 | Mark Browne, Mason Hayes & Curran
Recognition of ‘UCITS’ as a global brand for funds continues to go from strength to strength. In the years following the introduction of the potential for such funds to take advantage of additional investment options more typically associated with the alternative industry and hedge funds (in particular further to the ‘UCITS III’ regulatory
March 2012 | Eurekahedge
Hedge funds witnessed another month of strong returns in February as upbeat sentiment dominated global markets. Optimism about the European debt situation and strengthening global economy fuelled rallies in the underlying markets evident in the Eurekahedge Hedge Fund Index and MSCI World Index1 gains of 2.05% 2and 4.55% respectively during the month.
March 2012 | Eurekahedge
The Eurekahedge Hedge Fund Index gained 2.05% in February as optimism about the European debt situation and strengthening global economy fuelled rallies in the underlying markets. The MSCI World Index increased 4.55%2 as investor sentiment remained positive for the second month running.
March 2012 | Eurekahedge
Global hedge funds witnessed remarkable and divergent trends in 2011, delivering negative performance but also attracting net positive asset flows for the year. As at end-December 2011, the total size of the industry stood at US$1.7 trillion while the Eurekahedge Hedge Fund Index finished the year in negative territory with a decline of 4.02%
March 2012 | Eurekahedge
VL Asset Management, founded in January 2009, is a Hong Kong-based investment firm licensed by the Securities and Futures Commission (SFC) of Hong Kong. In its team of eight, four are investment professionals with complementary skills across fund management, equity research, equity trading, journalism and company audit
March 2012 | James Tinworth, Stephenson Harwood
Some terms in hedge fund documentation have existed, and been accepted, as ‘market standard’ for years. This article briefly considers a few of the more fundamental of these terms and explores whether new standards need to be found that strike a better balance between the investor, the manager and the fund.
March 2012 | Rob Blackstein and Myron Dzulynsky, Gowlings
A number of private equity funds and hedge funds are structured as limited partnerships that are governed by the terms of a limited partnership agreement (an ‘LPA’). A recurring theme in private equity fund investing is the use of ‘side letters’ between individual limited partners and the general partner of the fund. Side letters can range in scope from administrative matters to providing substantive rights to limited partners. Questions and issues inevitably arise as to the type of provisions that can be included in a side letter (which, in most cases only benefit the recipient of the side letter) as opposed to being incorporated into the limited partnership agreement itself (which generally benefit all limited partners of the fund).
February 2012 | Eurekahedge
Hedge funds posted a remarkable rebound in January as global markets rallied on renewed risk appetite. The Eurekahedge Hedge Fund Index was up 2.10% during the month, making it the best start of the year since 2006. The MSCI World Index gained 4.96% driven by positive data from the US and Europe. The asset-weighted Mizuho-Eurekahedge Index was up 1.58% in January, while the Mizuho-Eurekahedge Emerging Markets Index gained an excellent 5.89% during the month.
February 2012 | Eurekahedge
The Eurekahedge Hedge Fund Index was up 2.10%1 in January on the back of a strong resurgence in risk appetite, making it the strongest monthly return for the index since December 2010. The MSCI WorldIndex gained 4.96%2 as markets overcame lingering concerns about the European debt situation and posted strong rallies. The capital-weighted Mizuho-Eurekahedge Index was up 1.80% during the month.
February 2012 | Eurekahedge
The Asian hedge funds sector witnessed some mixed fortunes in 2011 with managers posting (on average) negative results for most of the year but also experiencing net positive asset flows. As at end-December 2011, the total size of the industry stands at US$124 billion managed by nearly 1300 funds.
February 2012 | Rolfe Hayden and George Hankey, Simmons & Simmons
In the blizzard of increased regulation from the United States and European Union, in particular the Dodd Frank Wall Street Reform and Consumer Protection Act and the Alternative Investment Fund Managers Directive (AIFMD), Asia’s two competing international financial centres – Hong Kong and Singapore, have traditionally taken different approaches to the further regulation of hedge fund managers. In the former, since the enactment of the Securities and Futures Ordinance (SFO) in 2003, no exempt status has been available. In the latter, there has long been an exemption for hedge fund managers. In the Special Administrative Region, since the global financial crisis the licensing regime has remained unchanged while in the ‘Lion City’ the regulatory regime is undergoing fundamental reform
January 2012 | Eurekahedge
Hedge funds were down 0.23% in December as global markets continued to be volatile in the last month of 2011. The Eurekahedge Hedge Fund Index finished the year with losses of 4.15%, the second-worst return for the index since its inception in 2000. Hedge funds outperformed the underlying markets by 5.8% during the year however; the MSCI World Index1 was down 0.4% in December and 9.9% for the year.
January 2012 | Eurekahedge
Hedge funds recorded a -0.23% return in December amid volatile market conditions and trend reversals that persisted into the last month of 2011. The Eurekahedge Hedge Fund Index was down 4.15% for the year, making it the second worst yearly return on record. Hedge funds continued to outperform the MSCI World Index, which was down 0.40%1 in December and 9.9% for 2011. The outperformance was led by the larger funds as evident from positive figures posted by the Mizuho Eurekahedge Top 100 Index, which was up 1.87% in 2011.
January 2012 | Eurekahedge
North American hedge funds witnessed another year of strong growth in 2011, despite a flat to slightly negative performance amid unhelpful market conditions. The Eurekahedge North American Hedge Fund Index registered a -1.13% return for the year, however the industry attracted US$55 billion in net positive asset flows from investors.
January 2012 | Warren Park and Seonghak Ahn, Hana Institute of Finance
As evidenced by the draft amendment on local hedge funds and prime brokers that has recently been released for public review, Korea is on the verge of having its own homegrown hedge fund industry. Many of the overly restrictive regulations that had previously stifled the development of Korean hedge funds are set to be eliminated or eased, while other areas have been given greater clarity. Because of these positive steps, many industry participants are sanguine about the potential for the industry, but some of the optimism may be excessive. This article attempts to outline some potential pitfalls for the industry in its early stages and show how financial regulators and institutional investors must continue to play an important role in ensuring that the industry develops in a manner that is not only sustainable but that promotes financial system stability and investor protections.
January 2012 | Mark Browne, Mason Hayes & Curran
Over the last 25 years, Ireland has earned a reputation as a leading domicile for internationally focused regulated investment funds. However in more recent years it has also grown to become the leading European jurisdiction for the establishment and servicing of alternative investment schemes and hedge funds in particular. Recent market statistics show that over 63% of European domiciled hedge funds currently use Irish legal structures while over 40% of global alternative investment funds (both Irish and non-Irish domiciled) are administered in Ireland.
December 2011 | Eurekahedge
The Eurekahedge Hedge Fund Index was down 0.87%1 in November as hedge funds provided significant downturn protection in a month marked by large declines and trend reversals. The MSCI World Index fell by nearly 10% during the course of the month and closed 3.22% lower at the end. Hedge funds also witnessed another month of net negative asset flows, with investors withdrawing more than US$9 billion in November.
December 2011 | Eurekahedge
Hedge funds ended November with marginal losses as the investment environment continued to be unpredictable. The Eurekahedge Hedge Fund Index was down 0.87%1 during the month amid larger declines in global markets, while the November year to date (YTD) figure fell to -3.78%.
December 2011 | Eurekahedge
After posting strong growth in 2009 and 2010, European hedge funds have faced some challenging times in 2011. The Eurekahedge European Hedge Fund Index was down 5.54% November YTD while assets under management (AuM); which had crossed the US$400 billion mark earlier this year, fell back to US$380 billion.
December 2011 | Carla de Waal and Marius Kilian, Novare Investments
The most important initial decisions for an investor are whether a hedge fund allocation is suitable for their portfolio and, if so, what the size of the allocation should be. It would be prudent to obtain expert financial advice when making this decision. The next step is how to access the opportunity set of available hedge funds, and here investors can choose to invest directly in one or more single-manager hedge funds, or use the multi-manager approach and invest in a fund of hedge funds. A fund of hedge funds is a diversified portfolio of individual hedge funds.
November 2011 | Eurekahedge
Hedge funds were up 2.04% in October as markets reversed sharply from the downtrend seen in the previous two months. Better than expected economic data from the US, as well as moves by European leaders to recapitalise European banks and address the debt crisis, resulted in a surge of optimism among investors. The MSCI World Index gained 8.65% during the month which witnessed rallying markets across the regions. However, the hangover from August and September led to further outflows from the sector.
November 2011 | Eurekahedge
Hedge funds bounced back with strong positive performances in October after two months of negative returns in August and September. The Eurekahedge Hedge Fund Index rose 2.04%1 on the back of renewed optimism in the market and resurgent risk appetite. The MSCI World Index gained 8.65%2 amid moves to resolve the European debt crisis and better than expected economic data from the US. October YTD; the markets are down 7.60%3 while the Eurekahedge Hedge Fund Index is down 2.90% and the Mizuho-Eurekahedge Top 100 Index4 (asset weighted) remains in the black with a 2.61% return.
November 2011 | Eurekahedge
The global fund of hedge funds industry has gone through turbulent times over the last four years. After growing at an incremental pace from 2003 to mid-2008, the industry was hit with excessive losses and widespread redemptions during the financial crisis. Since then, multi-managers have struggled to attract a significant amount of assets.
October 2011 | Eurekahedge
Hedge funds were down 2.69% in September; another month of highly volatile movements and broad declines across global markets. The MSCI World Index lost nearly 10% making September the fifth consecutive month of declines for the index. In this market environment, hedge funds were able to outperform the markets substantially. Even so, downbeat investor sentiment resulted in net negative asset flows.
October 2011 | Eurekahedge
Hedge funds outperformed global markets by 7.29% in September as the Eurekahedge Hedge Fund Index ended the month with a loss of 2.69%. Market movements were dominated by daily swings while the broad direction remained downwards sloping through the month, creating difficult trading conditions for managers. The MSCI World Index declined 9.98%, exhibiting the worst performance since October 2008 while the S&P GSCI Total Return Index declined by 12.17%.
October 2011 | Eurekahedge
Asian hedge funds have witnessed remarkable growth over the last decade in terms of both fund population as well as assets under management (AuM). As at August 2011 the total AuM in Asian hedge funds stood at US$135 billion; nearly six times that as of end-2000 while the number of funds increased more than six fold in that same period.
October 2011 | Eurekahedge
UCITS III hedge funds have continued to post significant gains through 2011, both in terms of assets under management (AuM) and the total number of funds. As at end-August 2011 we estimate there to be 740 unique managers1 with assets of nearly US$200 billion.
October 2011 | Eurekahedge
Caliburn Capital Partners is a thematic fund of hedge fund manager, founded in early 2005 with institutional backing of US$25 million and managed by a team of five seasoned investment professionals with 125 years combined experience of successfully managing hedge funds, funds of hedge funds and investment banking prop trading teams.
September 2011 | Eurekahedge
The Eurekahedge Hedge Fund Index fell 2.13% in August amid heightened volatility in global markets and increased risk aversion. Despite the negative returns, managers delivered significant outperformance and downturn protection in a highly volatile environment. The MSCI World Index fell 7.70% as market sentiment turned bearish, marked by global markets changing directions frequently throughout the month. Hedge funds were able to deliver the 5.57% outperformance against the MSCI World Index, as the sector continued to attract assets, albeit marginally.
September 2011 | Eurekahedge
Hedge funds surpassed global equity markets in August as the Eurekahedge Hedge Fund Index ended the month down 2.13% but with notable loss mitigation, outperforming the MSCI World Index2 by 5.57%. Challenging market conditions, lacklustre investor sentiment, the S&P credit downgrade of US Treasuries, as well as European debt worries were the main issues in the month as the MSCI World Index fell 7.7%. All major regional equity exchanges finished the month deep in the red with European bourses witnessing the largest losses as the MSCI Europe Index declined 10.47%. CTA and macro hedge funds capitalised on volatile markets and made net gains for the month of 0.08% and 0.19% respectively.
September 2011 | Eurekahedge
The Latin American hedge fund space has seen remarkable growth over the past decade. As of July 2011, the number of funds was nearly four times that as of end-2000, while assets over the same period recorded an increase over 23-fold. There are currently 442 operational hedge funds, managing over US$64 billion in assets.
September 2011 | Eurekahedge
Over the last 10 years Shariah compliant funds have seen significant growth, both in terms of the number of funds as well as assets under management (AuM). Rapid developments in the Islamic finance industry, have led to an increasing number of Shariah compliant funds employing different strategies and investing across new asset classes, representing the progress and advances made in the Islamic finance sector. In this report we discuss the key trends observed in the Islamic funds industry since 2000.
September 2011 | Siewling Lay and Peter Douglas, GFIA Pte Ltd
The size of assets under management (AUM) is one of the more common factors many investors use in their initial screening process to come up with a preliminary shortlist of investable funds. Some investors, in particular the larger ones, might be constrained by their necessarily large ticket size, resulting in them only looking at funds above a minimum AUM. Others may be concerned about the costs associated with, and sustainability of, a fund with a small asset size.
