Research Archive

Archive Year
October 2021

The Eurekahedge Report - October 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was down 0.44% in September 2021 and up 8.14% in 2021. Total assets under management decreased by US$5.6 billion during the month as the sector witnessed performance-based losses of US$7.9 billion while registering net asset flows of US$2.2 billion. The total size of the industry now stands at US$2,418.9 billion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index was down 0.44% in September, outperforming the global equity market as represented by the MSCI ACWI (Local) which returned -3.55% over the same period. Concerns over rising inflation continue to weigh on markets with the Federal Reserve raising its inflation forecast of the year to 4.2%, up from the previous estimate of 3.4%, driven by supply chain bottlenecks and the developing energy crisis in Europe and China which has pushed energy prices up by 11.60% in September.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index was down 0.44% in September, outperforming the global equity market as represented by the MSCI ACWI (Local) which returned -3.55% over the same period. Global investor sentiment was negatively impacted as supply chain bottlenecks and the developing energy crisis in Europe and China led to a 11.60% surge in energy prices in September, the largest monthly price increase since February 2021.


Cryptocurrency hedge funds: Managing the risks of investing in this highly volatile asset class

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.


European Hedge Funds Infographic 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.


Key Trends in European Hedge Funds (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

The Eurekahedge Report - September 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 0.76% in August 2021 and up 8.54% in 2021. Total assets under management increased by US$15.1 billion during the month – the sector witnessed performance-based gains of US$10.9 billion while registering net asset flows of US$4.3 billion. The total size of the industry now stands at US$2,409.8 billion.


Asset Flows Update

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.


Hedge Fund Performance Commentary

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.


Key Trends in Latin American Hedge Funds (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


Latin American Hedge Funds Infographic 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.


Key Trends in Emerging Market Hedge Funds (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.


Greater China hedge funds: Daunting challenges ahead in 2021 and beyond

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

The Eurekahedge Report - August 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 0.27% in July 2021 and up 7.85% in 2021. Total assets under management increased by US$11.4 billion during the month – the sector witnessed performance-based losses of US$5.7 billion while registering net asset flows of US$17.1 billion. The total size of the industry now stands at US$2,396.7 billion.


Asset Flows Update

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.


Hedge Fund Performance Commentary

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.


ESG fund: Consistently delivering alpha amidst the ongoing pandemic

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


Key Trends in North American Hedge Funds (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.


North American Hedge Funds Infographic 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

The Eurekahedge Report - July 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 0.26% in June 2021 and up 8.09% in 2021. Total assets under management decreased by US$7.6 billion during the month – the sector witnessed performance-based losses of US$3.5 billion while registering net asset outflows of US$4.1 billion. The total size of the industry now stands at US$2,385.2 billion.


Asset Flows Update

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.


Hedge Fund Performance Commentary

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. 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. This has led to concerns that the continued higher inflation would compel the Federal Reserve to act earlier than expected to pull back on its ultra-low interest rate policies and potentially derail the economic recovery.


Indian hedge funds outperformed global peers amid COVID-19 pandemic

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.


Key Trends in Asian Hedge Funds (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%.


Asian Hedge Funds Infographic 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

The Eurekahedge Report - June 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 0.87% in May 2021 and up 7.71% in 2021. Total assets under management increased by US$29.2 billion during the month – the sector witnessed performance-based gains of US7.1 billion while registering net asset inflows of US$22.1 billion. The total size of the industry now stands at US$2,372.7 billion.


Asset Flows Update

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.


Hedge Fund Performance Commentary

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. Consumer prices in May rose by 5.0% from a year ago, the highest level since August 2008 and caused concerns among investors that this could compel the Federal Reserve to tighten its easy-money policies earlier than it had planned to achieve its 2% average inflation goal. Despite the higher inflation figure, the Federal Reserve has signalled that interest rates will be increased only after the economy has made rapid progress toward the committee’s goals.


Long Volatility/Tail Risk: A perfect way to hedge your portfolio against market uncertainties

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.


Key Trends in UCITS Hedge Funds (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.


UCITS Hedge Funds Infographic 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

The Eurekahedge Report - May 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 2.16% in April 2021 and up 6.99% in 2021. Total assets under management increased by US$49.0 billion during the month – the sector witnessed performance-based gains of US28.8 billion while registering net asset inflows of US$20.1 billion. The total size of the industry now stands at US$2,339.0 billion.


Asset Flows Update

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.


Hedge Fund Performance Commentary

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. Strong corporate earnings and better than expected macroeconomic data acted as a tailwind to the performance of the equity market over the month. As fears of the COVID-19 pandemic’s impact on the recovery of the US economy lingered, the Federal Reserve reassured the market that monetary policy will be kept accommodative until the economy has made sufficient progress towards a recovery. The yield of the 10-year Treasury Note declined by 12 bp, causing a rally in interest rate sensitive tech stocks during the month.


Key Trends in European Hedge Funds (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.


High performing hedge funds retain ability to charge standard '2 and 20' fee structure and above despite overall trend of declining fees

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


European Hedge Funds Infographic 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

The Eurekahedge Report - April 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 0.95% in March 2021 and up 4.79% in 2021. In terms of performance per geographic mandate, Japanese hedge funds recorded the strongest return of 2.81% in March, but North American hedge funds lead the pack in terms of year-to-date performance with their 6.77% return. On the other hand, event-driven and long/short equities outperformed their peers as they returned 1.59% and 1.26% in March respectively.


Asset Flows Update

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.


Hedge Fund Performance Commentary

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. Long-dated US treasuries continued to sell off, resulting in the yield of the 10-year treasury note rising by 34bp to end the month at 1.744%. The Federal Reserve committed to keep monetary policy accommodative for at least another two years and allow inflation to rise above 2% before considering any policy change. This led to growing concerns among investors that the huge economic and monetary stimulus rolled out thus far would lead to rising inflation.


Fixed income-focused hedge funds: Return profile across the years

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.


Key Trends in Global Hedge Funds (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.


Global Hedge Funds Infographic 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

The Eurekahedge Report - March 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 2.99% in February 2021 and up 4.02% in 2021. Total assets under management increased by US$33.0 billion during the month – the sector witnessed performance-based gains of US23.2 billion while registering net asset inflows of US$9.8 billion. The total size of the industry now stands at US$2,277.0 billion.


Asset Flows Update

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.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index was up 2.99% in February 2021, outperforming the global equity market as represented by the MSCI ACWI (Local) which gained 2.72% over the same period. Global equity markets resumed their rally in the first two weeks of February on strong earnings and economic recovery hopes as the successful implementation of Biden’s US$1.9 trillion economic stimulus package looked increasingly likely.


Tech-focused hedge funds: sustaining returns in a rising rate environment

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.


Key Trends in Fund of Hedge Funds (March 2021)

Eurekahedge

Multi-manager funds were down 0.19% over the first month of 2021, underperforming their single-manager counterparts who gained 0.99% over the same period. In 2020, the fund of funds industry registered a 11.90% return – recording their best annual performance since the inception of the Eurekahedge Fund of Funds Index in 2000. Global equities went on a roller coaster ride in January 2021 as their early gains were erased due to the turbulence of retail investment in the latter part of the month.


Fund of Hedge Funds Infographic March 2021

Eurekahedge

Eurekahedge’s fund of hedge funds infographic sums up the industry as at March 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.


February 2021

The Eurekahedge Report - 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

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

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)

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

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

The Eurekahedge Report - January 2021

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 3.30% in December 2020 and up 11.68% year-to-date. Total assets under management increased by US$42.6 billion during the month - the sector witnessed performance-based gains of US34.4 billion while registering net asset inflows of US$8.2 billion. The total size of the industry now stands at US$2,237.8 billion.


Asset Flows Update

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.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index was up 3.41% in December 2020, bringing its 2020 return to 11.68% - its strongest annual performance in over a decade. The underlying global equity market as represented by MSCI ACWI gained 4.04% over the same month. Global hedge funds benefitted from the strong rally of risk assets during the month driven by the deployment of several COVID-19 vaccines and the passage of the new COVID-19 relief bill in the US, which was the second-largest economic stimulus in American history. In the US, NASDAQ Composite was up 5.65% in December, bringing its 2020 return to 43.64% compared to 19.30% of the S&P 500.


Key Trends in North American Hedge Funds (January 2021)

Eurekahedge

The Eurekahedge North American Hedge Fund Index was up 10.53% year-to-date as of November 2020, driven by the strong performance of the underlying equity market as represented by the MSCI North America IMI, which gained 13.32% over the same period. Supported by the strong performance of the equity market in the region, North American hedge funds quickly recovered from their 10.14% deficit in the first quarter which was their worst quarterly performance since inception due to the spread of the COVID-19 outbreak in the region.


North American Hedge Funds Infographic 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.