Research

The Eurekahedge Report - August 2021

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

August 2021 | 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

August 2021 | 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.

Key Trends in North American Hedge Funds (August 2021)

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.

ESG fund: Consistently delivering alpha amidst the ongoing pandemic

August 2021 | 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

North American Hedge Funds Infographic August 2021

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.