March 2020 | Eurekahedge
The benchmark Eurekahedge Hedge Fund Index was down 1.73% in February 2020 and 1.66% year-to-date. Total assets under management decreased by US$32.1 billion during the month as the sector witnessed performance-based decline of US$33.8 billion while registering net asset inflows of US$1.7 billion. The total size of the industry now stands at US$2,270.6 billion.
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.
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.
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.
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.
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.
March 2020 | Gus Black, Russel G. Perkins, Omoz Osayimwese and Nathalie Sadler - Dechert LLP
The Institutional Limited Partners Association (“ILPA”) has recently issued a publicly available model private equity limited partnership agreement (the “Model LPA”) as part of its simplification initiative. ILPA is an international organization that represents the limited partner community, although it also works with managers of private equity funds and other practitioners when publishing its model texts and guidelines. One of ILPA’s principal aims in publishing the Model LPA is to standardize a document that is generally negotiated on a bespoke basis.
