The benchmark Eurekahedge Hedge Fund Index was up 2.03% in June 2020 and down 2.63% year-to-date. Total assets under management increased by US$16.7 billion during the month as the sector witnessed performance-based gains of US$9.3 billion while registering net asset inflows of US$7.4 billion. The total size of the industry now stands at US$2,097.9 billion.
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.
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%.
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.
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.
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.
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.
The COVID-19 pandemic is creating significant economic challenges for industries world-wide. The European venture capital industry and the start-up ecosystem it supports is no exception.
The COVID-19 pandemic continues to adversely impact fundraising activity of private equity funds.
In this report, we summarise the current fundraising environment, our experience from the 2007-2009 global financial crisis (“GFC”), our experience from the COVID-19 outbreak, innovations for fundraising during the COVID-19 outbreak that we have devised for fund managers based on our experience from the GFC and silver linings.
Over the past few weeks, our private fund manager (GP) clients have been focusing on their portfolios, supporting investments with liquidity concerns as cashflows dry up, and exploring new opportunities in dislocated markets. At the fund level, the immediate preoccupation of GPs has been valuations – particularly for their Q1 reporting to investors (LPs).