Research

The Eurekahedge Report - February 2021

February 2021 | Eurekahedge


The benchmark Eurekahedge Hedge Fund Index was up 0.54% in January 2021 and up 12.11% in 2020. Total assets under management decreased by US$24.6 billion during the month – the sector witnessed performance-based losses of US19.9 billion while registering net asset outflows of US$4.7 billion. The total size of the industry now stands at US$2,234.0 billion.

Asset Flows Update

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

Hedge Fund Performance Commentary

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 (Local) which gained 0.11% over the same period. Global equities went on a roller coaster ride this month as their early gains were erased due to the turbulence of retail investment in the latter part of January. In the US, Joe Biden's inauguration as the 46th president in the US and Democrats taking control in the Senate boosted the performance of the equity market in the earlier period of the month. Investors were optimistic about the proposed domestic stimulus and shift in the foreign policy of the new administration.

Key Trends in Asian Hedge Funds (February 2021)

February 2021 | Eurekahedge


The Eurekahedge Asian Hedge Fund Index was up 17.64% year-to-date as of December 2020, outperforming the underlying equity market as represented by the MSCI AC Asia Pacific IMI, which gained 12.23% over the same period. In 2019, Asian hedge funds registered a 10.12% return, supported by the strong performance of the underlying equity market on the back of positive geopolitical developments and accommodative central bank policies. Moving into 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 suffering a 9.04% loss in the first quarter of the year.

Asian Hedge Funds Infographic February 2021

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.