Research

The Eurekahedge Report - October 2020

October 2020 | Eurekahedge


The benchmark Eurekahedge Hedge Fund Index was down 0.76% in September 2020 and up 3.22% year-to-date. Total assets under management decreased by US$31.4 billion during the month – the sector witnessed performance-based losses of US14.4 billion while registering net asset outflows of US$17.0 billion. The total size of the industry now stands at US$2,158.5 billion.

Asset Flows Update

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.

Hedge Fund Performance Commentary

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.

Key Trends in Global Hedge Funds (October 2020)

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.

Global Hedge Funds Infographic October 2020

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.