Research Archive

Archive Year
October 2019

The Eurekahedge Report - October 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was down 0.30% in September, up 5.70% year-to-date. Total assets under management declined by US$2.7 billion during the month as the sector witnessed performance based increase of US$3.4 billion while registering net asset outflows of US$6.2 billion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index declined 0.30% in September, trailing the global equity market which edged 2.04% higher over the month, as represented by the MSCI ACWI (Local). Global equities rallied through the earlier half of the month, supported by the resumption of the US-China trade talks, only to retreat toward the end of the month as an impeachment inquiry was launched against the US President. The bond market saw yields decline as major central banks continued with their easing policies: the Fed cut its rate for the second time this year in September, and the ECB announced new stimulus packages, including the restart of their asset purchases. Returns were mostly positive across regions, with the exception of fund managers focusing on Europe, who were down 0.10% in September. Nonetheless, the mandate is still up 3.75% on a year-to-date basis. Japan-focused hedge funds were up 1.26% throughout the month, outperforming their Asia ex-Japan peers who were up 0.97%.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index was down 0.30% in September, underperforming the MSCI ACWI (Local), which ended the month up 2.04%. The resumption of the US-China trade negotiations combined with the withdrawal of the controversial Hong Kong extradition bill boosted the two regions’ equity markets early into the month. However, the impeachment inquiry against the US President Donald Trump wiped out a portion of the gains posted by US equities, dragging the S&P 500 down 1.01% through the week ending 27 September. Despite the improving risk sentiment among investors throughout the month, the global bond markets saw yields decline due to the accommodative stance adopted by the major central banks. The ECB announced new stimulus measures, including the resumption of asset purchases, while the Fed decided to cut its rate for the second time this year in September. The commodity market saw a sharp increase in oil prices during the month following the drone attack on Aramco oil facilities,


Hong Kong: A turning point for the number one Asian hedge fund hub

Eurekahedge

Hong Kong has been a major focal point within the Asia Pacific hedge fund industry, currently accounting for US$92.1 billion of assets under management (AUM), overseen by 449 hedge fund managers as of August 2019. Proximity to the fast-growing economy of China, availability of highly-trained talent base, as well as robust regulatory landscape have successfully attracted both foreign and domestic hedge fund managers to base their operations in the special administrative region. The Hong Kong hedge fund industry has continued to grow and reach new highs on the back of robust investor allocations and performance-driven growth in the post-GFC era. Seen as the gateway to China, Hong Kong is uniquely positioned to benefit from foreign asset owners interested in allocating into the Greater China region, as well as domestic asset owners looking to gain international exposure.


2019 Key Trends in North American Hedge Funds

Eurekahedge

The Eurekahedge North American Hedge Fund Index was up 5.71% year-to-date as of August 2019, underperforming the underlying equity market as represented by the MSCI North America IMI, which gained 16.47% over the same period. The progress of the US-China trade negotiations combined with the exhibited accommodative stance of the Fed acted as tailwinds for North American hedge fund managers, resulting in Q1 return of 5.22% - the strongest since 2006. The positive developments of the US-China trade talks prompted President Trump to delay the scheduled tariff increase in March, which further uplifted the risk sentiment among investors during the first few months of the year. However, the robust rally in the equity market ended in May, following President Trump’s decision to increase the tariffs imposed on the Chinese imported goods resulting in the breakdown of their trade negotiation. Over the same month, President Trump blacklisted Huawei due to national security concerns. The tech-heavy


North American Hedge Funds Infographic October 2019

Eurekahedge

Eurekahedge’s North American hedge funds infographic sums up the industry as at October 2019. 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.


AMLD5 in Germany: Implementation provides far-reaching licensing requirements for crypto-asset service providers

Hans Stamm - Dechert LLP

German draft bill for the implementation of the 5th EU Anti-Money Laundering Directive provides for licensing requirements and an expansion of the address of the anti-money laundering obligations with regard to crypto-asset service providers. On 31 July 2019 the Federal Cabinet published a draft bill implementing the Amending Directive to the 4th EU Anti-Money Laundering Directive (Directive [EU] 2018/843) into German law (”AMLD5””). The bill introduces, amongst other things, changes to the German Anti-Money Laundering Act (Geldwäschegesetz – GwG) and to the German Banking Act (Kreditwesengesetz – KWG) and new provisions for electronic wallet providers and exchange platforms for crypto-assets. The draft bill will become effective on 1 January 2020 and will have a big impact on the crypto-assets industry as it extends the scope of anti-money laundering and countering financing of terrorism (AML/CFT) duties to providers engaged in exchange services between virtual currencies and fiat


Crowd-sourced funding in Australia: a viable alternative?

Jeremy Horwood - Corrs Chambers Westgarth

Earlier this year, the first report on Australia’s crowd-sourced funding (CSF) sector was released by the Australian Securities and Investment Commission (ASIC). The release of the report follows the expansion of Australia’s CSF regime to include eligible proprietary companies in late 2018.


FDIC and OCC Approve Volcker 2.0 — Summary of Amendments to Fund Activity Provisions

Joseph P. Vitale and Jessica Romano - Schulte Roth & Zabel LLP

On Aug. 20, 2019, the Federal Deposit Insurance Corporation (“FDIC”) and the Office of the Comptroller of the Currency (“OCC”) approved a final rule (“Final Rule”) to amend the regulations adopted in 2013 (“2013 Rule”) implementing Section 13 of the Bank Holding Company Act, commonly referred to as the “Volcker Rule.” While the Final Rule is largely similar to the Notice of Proposed Rulemaking issued by the agencies on May 30, 2019 (“Proposed Rule”), it does contain important modifications from the Proposed Rule. The other three agencies charged with implementing the Volcker Rule — the Commodity Futures Trading Commission (“CFTC”), Federal Reserve Board (“Board”) and the Securities and Exchange Commission (“SEC” together with the FDIC, OCC, CFTC and Board, “Agencies”) — are expected to approve the Final Rule in the coming days.


New Regulatory Framework for the Cross-border Distribution of Investment Funds

Mark White, Iain Ferguson, Tony Spratt, Darragh Murphy, Hugh Beattie and Anna Moran - McCann FitzGerald

The EU’s new regulatory framework facilitating the cross-border distribution of collective investment undertakings was published in the EU’s Official Journal on 12 July 2019. The new framework, which is intended to provide clarity for fund managers that want to market their products across the EU comprises: Regulation 2019/1156 on facilitating cross-border distribution of collective investment undertakings and amending the EUVECA Regulation 345/2013, the EUSEF Regulation 346/2013 and the PRIIPs Regulation 1286/2014 (the “Regulation”) (here); and Directive 2019/1160 which amends the UCITS Directive 2009/65 and the Alternative Investment Fund Managers Directive 2011/61 (“AIFMD”) in certain respects (the “Directive”)


The ABCs of ESG

Eric Belli-Bivar - DLA Piper

A further example evidencing the trend towards ESG investment in Canada comes from the largest single investor in Canada: the Canadian Pension Plan. The Canada Pension Plan (“CPP”) offers Canadian contributors and their families with partial replacement ?of earnings upon retirement, disability, or death. Almost all individuals who work in Canada outside of ?the Province of Quebec (where the Quebec Pension Plan provides similar benefits) contribute to the ?CPP. ?In 2013, CPP’s net managed assets totaled CAD $175.0 billion.


September 2019

The Eurekahedge Report - September 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 0.17% in August and up 6.58% year-to-date. Total assets under management declined by US$4.4 billion during the month as the sector witnessed performance-based decline of US$1.9 billion while registering net asset outflows of US$2.5 billion. The total size of the industry now stands at US$2,282.8 billion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index gained 0.17% in August, outperforming the global equity market which slumped 2.37% over the month, as represented by the MSCI ACWI (Local). The re-escalation of the US-China trade war combined with other political concerns resulted in weak global equity performance during the month. Despite the ongoing trade talks, the US imposed additional tariffs to US$300 billion of Chinese imported goods. The move prompted China to levy retaliatory tariffs to US imported goods, which rattled the world’s financial markets. Meanwhile, the deteriorating bilateral relationship between Japan and South Korea, the ongoing protests in Hong Kong, and the heightened risk of a no-deal Brexit also contributed to the risk-off sentiment among investors. Fund managers focusing on North America and Asia ex-Japan were down 0.78% and 0.96% respectively in August. Nonetheless, the two mandates are still up 6.04% and 6.83% respectively on a year-to-date basis, owing to their strong per


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index was up 0.17% in August, outperforming the MSCI ACWI (Local) which ended the month down 2.37%. The US administration imposed additional tariffs to the remaining US$300 billion of Chinese imported goods, which resulted in the weakening of the CNY past the symbolic 7 per USD level early into the month. Consequently, the US Treasury Department labelled China as a currency manipulator, further intensifying the trade tension between the two countries. The risk-off sentiment among investors during the month was mostly driven by political concerns encompassing the US-China trade war, the deteriorating bilateral relationship between Japan and South Korea, the ongoing protests in Hong Kong, and the risk of a no-deal Brexit among other things. Further exacerbating the risk-off sentiment during the month, the US 2-10Y yield spread inverted for the first time since 2007, raising concerns over an impending economic recession.


ESG Fund Investing: The pursuit of sustainable alpha

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 article 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


2019 Key Trends in Asian Hedge Funds

Eurekahedge

The Eurekahedge Asian Hedge Fund Index was up 6.06% year-to-date as of July 2019, despite several political uncertainties that plagued the region. The underlying equity market as represented by the MSCI AC Asia Pacific IMI gained 7.79% over the same period. Investors’ optimism towards the US-China trade talks combined with central bank rate cuts and the Chinese stimulus program boosted the region’s equity market resulting in strong Q1 performance of Asian hedge funds. However, the risk-sentiment had shifted entirely in May following the decision of the US administration to increase the tariff to the US$200 billion of Chinese imported goods. The move prompted the Chinese government to retaliate, which resulted in the escalation of their trade conflict. The Shenzhen and Shanghai Composite Index lost 6.40% and 5.84% in May, respectively.


Asian Hedge Funds Infographic September 2019

Eurekahedge

Eurekahedge’s Asian hedge funds infographic sums up the industry as at September 2019. 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.


EMIR Refit update

Nick Shiren, Assia Damianova and Michael Sholem - Cadwalader Wickersham & Taft LLP

Regulation (EU) No 648/2012 (“EMIR”) imposed a range of obligations which can apply to counterparties trading in derivatives, including a clearing obligation, risk mitigation obligations (including the exchange of collateral) and a reporting obligation. In 2017, following a review of the effectiveness of EMIR, the European Commission published a proposal for a new regulation to amend EMIR, with the aim of making the legislation operate in a more proportionate, efficient and effective manner. The new Regulation (“EMIR Refit”) has now been published in the Official Journal of the EU and the majority of its provisions will come into force on 17 June 2019.


ILPA Releases Principles 3.0 to Address New Developments in Private Equity

David A. Winter and Bryan R. Ricapito - Hogan Lovells

ILPA report highlights new issues that have emerged in the 2010s, including additional concerns about GP conflicts and fiduciary duties, fee and expense reporting, subscription lines of credit, GP-led secondaries, co-investment allocations and change of control of the GP. Hogan Lovells is a recognised leader in representing both LPs and GPs in every aspect of the private equity industry, from fundraising and regulatory compliance to M&A and credit financing.


August 2019

Press Release: Statement on Cyber Incident Regarding Eurekahedge

Eurekahedge

Eurekahedge values our clients and understands the importance of protecting personal information. Read more for the latest update in our security measures.


The Eurekahedge Report - August 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 0.62% in July and up 6.48% year-to-date. Total assets under management increased by US$6.0 billion during the month as the sector witnessed performance based increase of US$18.1 billion while registering net asset outflows of US$12.1 billion. The total size of the industry now stands at US$2,292.4 billion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index gained 0.62% in July, with positive returns across geographic mandates. Investor optimism towards the resumption of the US-China trade talks combined with the Fed’s anticipated rate cut boosted the US equity market to a new all-time high. Meanwhile in Asia, Asia ex-Japan hedge funds managed to record positive returns of 0.73% over the month. Despite the ongoing protests in Hong Kong and the trade dispute between Japan and South Korea, Asia ex-Japan hedge funds outperformed their North American peers who gained 0.32% over the same period. Roughly 33.7% of the hedge fund managers tracked by the Eurekahedge Global Hedge Fund Database were able to generate positive returns during the month.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index was up 0.62% in July, supported by gains in developed market equities and bonds over the month. The MSCI ACWI (Local) ended the month up 0.83% with US equities outperforming other markets. The anticipated rate cut from the Federal Reserve combined with the resumption of the US-China trade talks after the breakdown in May boosted the US equity markets and pushed Wall Street’s three major stock indices to new all-time highs during the month. On the other hand, the trade dispute between Japan and South Korea, together with lacklustre economic data in India pushed Asian equities lower. Returns were positive across geographic mandates in July, with North American fund managers gaining 0.32% and Asia ex-Japan fund managers up 0.73%. Fund managers utilising equity long-bias strategies gained 0.62% throughout the month, pushing their year-to-date return to 11.65%.


Trade finance hedge funds maintained their winning edge throughout the trade war

Eurekahedge

Trade finance hedge funds have gained traction over recent years, driven by investor demand for alternative asset classes with low volatility and consistent return, as well as low correlation against the broader financial market. The sector began its rapid growth following the global financial crisis in 2008, when banks started reducing their trade finance exposure to meet Basel III capital requirements. To address the lack of a standard benchmark for this niche hedge fund strategy, Eurekahedge launched the industry’s first trade finance hedge fund index in 2018, providing institutional investors with a benchmark index representing the performance of trade finance hedge fund managers.


2019 Key Trends in Global Hedge Funds

Eurekahedge

The Eurekahedge Hedge Fund Index was up 5.80% year-to-date, trailing the underlying equity market as represented by the MSCI ACWI IMI which was up 14.44% over the same period. The trade optimism resulting from the trade truce between the US and China, combined with the complete shift of the Federal Reserve’s stance on rates supported global equities over the first four months of the year. However, the trade negotiation between the world’s two largest economies collapsed in May, and the Trump administration increased tariffs on US$200 billion of Chinese imported goods, prompting the Chinese government to do the same.


Global Hedge Funds Infographic August 2019

Eurekahedge

Eurekahedge’s global hedge funds infographic sums up the industry as at August 2019. 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.


Interview with Dr. Peng She, Co-Founder and CIO of Golden Pine Asset Management

Eurekahedge

Dr. Peng She is the co-founder and CIO of Golden Pine Capital. He graduated from Tsinghua University in Beijing with Bachelor, Master and PhD degrees. In June 2016, he established Golden Pine Capital, the investment manager of Golden Pine Fund. In 2011, he joined Greenwoods Asset Management. He was senior analyst of cyclicals and utilities. He was also directly involved in portfolio management, able to earn rich experience in both domestic and offshore market. From 2006 to 2011, he worked for BASF and Dow Chemical Company, world's top two chemical companies. He was responsible for all the external innovation and technology cooperation in the Greater China District.


Update on Economic Substance Rules for Guernsey Fund Managers

Tim Clipstone, Marcus Leese - Ogier

The Income Tax (Substance Requirements) (Implementation) Regulations 2018, as amended, came into effect on 1 January 2019 and apply to accounting periods commencing on or after that date. The new economic substance requirements apply to certain Guernsey tax-resident companies and have been passed in order to comply with the EU Code of Conduct Group on Business Taxation for the purpose of demonstrating that the profits generated by Guernsey companies which carry on certain specified geographically mobile activities, including, in particular, for the purpose of this article, fund management business, are commensurate with their economic activities and substantial economic presence in Guernsey


July 2019

Press Release: Eurekahedge partners with eVestment to provide access to 30,000+ funds

Eurekahedge

Eurekahedge, the data provider and alternative research firm have partnered with eVestment, a global leader in institutional investment data and analytics, to announce the addition of Eurekahedge fund data and indices to clients of eVestment's suite of Analytics solutions.


The Eurekahedge Report - July 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 1.83% in June, up 5.84% year-to-date. Total assets under management increased by US$9.1 billion during the month as the sector witnessed performance based increase of US$15.5 billion while registering net asset outflows of US$6.4 billion. The total size of the industry now stands at US$2.29 trillion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index gained 1.83% in June, recouping the losses it suffered back in May as the global equity markets recovered during the month. Investor optimism over the progress of US-China trade talks, coupled with growing expectations of a Fed rate cut supported equity markets around the globe, with the MSCI AC World Index rallying 5.41% in June. Roughly 78.2% of the hedge fund managers tracked by the Eurekahedge Global Hedge Fund Database were able to generate positive returns amidst the risk-on environment during the month. On a year-to-date basis, hedge fund managers have returned 5.84%, recording their strongest 1H performance since 2009.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index was up 1.83% in June, recording its strongest first half return of 5.84% since 2009. Hedge fund managers benefited from strong equity market performance on the back of optimism over the progress of US-China trade talks and the growing expectation of a rate cut of the Federal Reserve over the month. The global equity market as represented by MSCI ACWI (Local) gained 5.41% during the month. The expected meeting of the US President Donald Trump and his Chinese counterpart Xi Jinping during their G-20 summit in Osaka renewed investor optimism on the resolution of the trade conflict which has plagued the market since last year. Meanwhile, weak economic data combined with rising concerns of a global economic slowdown prompted the Federal Reserve to reassess their stance. The expectations that the Fed will soon cut rates resulted in declining bond yields throughout the month, with the US 10-year bond yield dipping to its lowest level since November 2016.


Hedge Fund Fees Overview 2019

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.


2019 Key Trends in European Hedge Funds

Eurekahedge

The Eurekahedge European Hedge Fund Index was up 2.96% year-to-date as of May 2019, trailing behind the region’s underlying equity market as represented by the MSCI AC Europe IMI which gained 8.92% over the same period. In 2018, European hedge fund managers posted losses under the combined onslaught of Brexit negotiation uncertainties, the Italian debt crisis and the escalation of the US-China trade war.


European Hedge Funds Infographic July 2019

Eurekahedge

Eurekahedge’s European hedge funds infographic sums up the industry as at July 2019. 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.


2019 Key Trends in Long-Only Absolute Return Funds

Eurekahedge

The Eurekahedge Long-Only Absolute Return Fund Index was up 6.96% as of May 2019 year-to-date, recouping some of the losses suffered by absolute return fund managers in 2018. Over the first five months of 2019, absolute return funds have outperformed funds of hedge funds and hedge funds which returned 4.39% and 3.90% respectively, as they benefited from the equity market rally which resulted from accommodative central bank policies and robust Q1 economic data. Optimism over the progress of the US-China trade talks and dovish stance exhibited by major central banks pushed the global equity market since the beginning of the year, as seen from the 8.53% year-to-date return posted by the MSCI ACWI IMI (Local).


Interview with Dr. Peng She, Co-Founder & CIO of Golden Pine Asset Management

Eurekahedge

Dr. Peng She is the co-founder and CIO of Golden Pine Capital. He graduated from Tsinghua University in Beijing with Bachelor, Master and PhD degrees. In May 2016, he established Golden Pine Capital, the investment manager of Golden Pine Fund. In 2011, he joined Greenwoods Asset Management. He was senior analyst of cyclicals and utilities. He was also directly involved in portfolio management, able to earn rich experience in both domestic and offshore market. From 2006 to 2011, he worked for BASF and Dow Chemical Company, world's top 2 chemical companies. He was responsible for all the external innovation and technology cooperation in the Greater China District.


EMIR REFIT: Bringing the EU and the US Closer Together?

Yvette D. Valdez, J. Ashley Weeks and Polly Ehrman - Latham & Watkins LLP

EMIR REFIT came into force on 17 June 2019, helping to level the playing field between the EU and the US. Key Points: • Alternative investment funds will bear the brunt of the changes as EMIR REFIT closes an exemption many have relied upon for years to avoid mandatory clearing and margining of OTC derivatives. For such entities there is no grandfathering for existing trades. • Small financial counterparties and non-financial counterparties benefit from relief with respect to several obligations they originally faced under EMIR. • Many of these changes bring the EU and US regulatory regimes into closer alignment.


The Other ‘CFO’ That Funds Should Know About

Gilbert K.S. Liu, Laurence Pettit - Kramer Levin Naftalis & Frankel LLP

Structured finance transactions, whether of the CLO or CDO variety, are highly regulated today, following the losses certain types of these products suffered in and around the 2008 financial crisis. Nevertheless, with the strong performance of the leveraged finance market, the market for CLOs has rebounded strongly in the intervening years. At the same time, certain other structures are still less common and might have been overlooked by investors in recent years. One of these is the collateralised fund obligation (CFO).


June 2019

The Eurekahedge Report - June 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was down 0.71% in May, up 4.32% year-to-date. Total assets under management decreased by US$19.2 billion during the month – the sector witnessed performance based decrease of US$18.3 billion while registering net asset outflows of US$0.9 billion. The total size of the industry now stands at US$2.29 trillion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index slumped 0.71% in May, recording its first monthly decline in 2019 after posting four consecutive positive months. On a year-to-date basis, hedge fund managers are still up 4.32%, supported by the recovery in global equity and bond markets in the first quarter. The return of the US-China trade tension during the month of May weighed on the global economic outlook, resulting in the weak performance of global equities. The MSCI AC World Index plummeted 6.12% in May, as investors were unnerved by the escalating trade disputes. On the other hand, global government bonds saw gains as yields fell on the back of expectations that the Fed will soon cut rates in response to weak economic outlook.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index was down 0.71% in May , following four consecutive positive months since the beginning of the year. Hedge fund managers struggled to generate returns amidst the risk-off environment resulting from the re-escalation of the US-China trade war. The Trump administration’s decision to raise tariffs on Chinese imports prompted the other side to launch retaliatory tariffs, leading to worsening global economic outlook which weighed on global equities during the month. The MSCI ACWI (Local) ended the month down 6.12%. On the other hand, the US 10-year treasury yield dipped to its lowest point in almost two years, as investors expect that the Fed will have to cut interest rates in near future. On a year-to-date basis, hedge fund managers are still up 4.32% as of May 2019.


Eurekahedge Global Hedge Fund Awards 2019 Profile

Eurekahedge

The Eurekahedge Global Hedge Fund Awards have been launched with the intent of identifying and celebrating the very best of hedge fund managers in the Americas, Europe, Middle East & Africa (EMEA) and Asia Pacific (APAC) across 45 award categories carefully designed to track key strategic and regional mandates within the global hedge funds industry. In addition to this, we have introduced specialised awards that recognise the performance of new entrants to the industry as well as ‘consistency awards’ for established players that have continued to add value for institutional investors over the years. As a first for the hedge fund industry, the funds are evaluated over the same time period under consideration for all regional awards (Americas, EMEA and APAC) using a consistent methodology that draws on the expertise of our judges who have extensive years of experience allocating institutional money to hedge funds across the globe.


2019 Key Trends in Funds of Hedge Funds

Eurekahedge

Multi-manager funds have recovered from the losses they suffered last year by gaining 5.32% over the first four months of 2019, outperforming their single manager counterparts who returned 5.08% over the same period. In 2018, the fund of hedge funds industry posted its worst annual performance since 2011 as a result of the escalation of the US-China trade war and the Federal Reserve’s aggressive monetary policies throughout the year. Moving into 2019, the easing tension between the US and China trade conflict, combined with the softening stance of the Fed as a response to the weak economic data supported the global equity market over the first few months of the year.


Funds of Hedge Funds Infographic June 2019

Eurekahedge

Eurekahedge’s funds of hedge funds infographic sums up the industry as at June 2019. Find out more about funds 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.


Interview with Sid Klein, Founder & CIO at Global Alternative Investments

Eurekahedge

Mr. Klein is Founder and CIO of Global Alternative Investments (GAI). His 37 years of experience began as a stockbroker working at local and multi-national firms, where he developed his knowledge in the US, Japanese and Chinese equity markets, along with a matching proficiency in precious metals and major currencies, all with an accompanying expertise in derivatives. His comprehensive methodology includes in-depth technical, quantitative, fundamental and valuation analyses. Over a multi-decade period, Sid has identified multiple historic turning points in the major markets and asset classes, often within days. He has appeared in the popular print and TV media since the nineties, while also sharing his commentaries on specialised websites.


Accessing PRC commodity futures from offshore - benefits of the proposed revisions to the QFII and RQFII programmes

Peter Zaman, Katherine Yang, Jeffrey Yang and Matthew R. Yeo - Reed Smith

The changes proposed by the CSRC to the Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) programmes, if fully implemented, will allow qualified offshore investors to invest in PRC commodity futures, in addition to PRC securities and bonds, for the first time. This will give customers of qualified investors access to a new asset class (commodity futures) and will give commodity market participants the ability to access PRC commodity futures markets without the need to establish a local PRC entity. Whether this route gives access to all PRC commodity futures or just those that are already accessible from offshore (i.e., iron ore, crude oil and purified terephthalic acid futures) will depend on the decisions of the respective PRC commodity futures exchanges and the consent of the CSRC.


Cayman Funds Resurgent

Jarrod Farley - Carey Olsen

In the face of economic sluggishness and regulatory change, the Cayman funds industry has marched steadily on – and looks set to prosper for many years to come, says Jarrod Farley of Carey Olsen. The Cayman funds industry has been quietly and steadily continuing its growth trajectory over the past decade, shrugging off the temporary effects of the global financial crisis, despite ongoing sluggishness in the global economy.


New NFA Proficiency Requirements for Hedge Fund Managers

Brian T. Daly and Joshua B. Wright - Schulte Roth & Zabel LLP

The National Futures Association, the self-regulatory organisation for the commodity futures and swaps industry, recently updated its rules to impose “swaps proficiency requirements” on associated persons of NFA members that engage in swaps-related activities. These requirements are likely to be applicable to a significant number of hedge fund advisers (i.e., advisers that are, or are required to be, registered with the Commodity Futures Trading Commission and to be NFA members). While most private equity sponsors are not likely to fall within the scope of any NFA licensing requirement, they should take this opportunity to confirm that the basis for any exemption remains valid.


Revised proposals for new AIFMD marketing rules: how might they impact non-EU funds and their managers?

Nicholas Holman and Jonathan Baird - Hogan Lovells

Back in March 2018 the European Commission announced a proposal for a supplementary Alternative Investment Fund Managers Directive (AIFMD) focussed on the subject of so-called "pre-marketing" of private equity and other alternative investment funds to European professional investors.


May 2019

The Eurekahedge Report - May 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 1.06%[1] in April, 5.15% year-to-date. Total assets under management increased by US$13.3 billion during the month as the sector witnessed performance-based increase of US$15.1 billion while registering net asset outflows of US$1.8 billion. The total size of the industry now stands at US$2.32 trillion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index was up 1.06% in April, recording its fourth consecutive positive month of 2019. On a year-to-date basis, the index was up 5.15%, supported by the recovery in global equity and bond markets since the beginning of the year. Promising economic data, dovish central banks and optimism over the US-China trade talks over the first quarter helped fund managers recover from the losses they suffered last year. The MSCI AC World Index rallied 3.38% in April, supported by robust labour market data and strong earnings in the US. Despite ongoing concerns over slowing growth, China’s economy expansion over the first quarter beat estimates, supporting the region’s equity markets. However, the positive results led to unease among investors as the PBOC may decide to scale back their policy support. The majority of hedge fund managers tracked by Eurekahedge ended the month of April up, with those focusing on North America and Japan outperforming their peers. Investor all


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index gained 1.06% in April, after recording one of its strongest Q1 returns post-crisis. Hedge fund managers have recorded four consecutive months of positive performance since the beginning of 2019, supported by strength in the global equity and bond markets which resulted from encouraging economic data and accommodating central bank policies. On a year-to-date basis, hedge fund managers are up 5.15% as of April 2019. Positive earnings surprises helped renew investors’ optimism in the global equity market, which rallied 3.38% during the month as represented by the MSCI ACWI (Local). Optimism over the progress of the US-China trade talks helped bolster the equity markets around the globe over the first four months of the year, counterbalancing concerns over economic growth slowdown. However, recent development of the US-China negotiations pointed towards another escalation of the trade tension, with the US president announcing more tariffs in early May.


Eurekahedge Asian Investor Perspectives – Hong Kong 2019

Eurekahedge

Altinvestor APAC 2019 is Eurekahedge’s fourth Asian asset owner event and the sixth of its kind across Europe and APAC, delivering exclusive insights from family offices as well as institutional asset owners on exploring alternative assets and optimising portfolio returns. The event is aimed at facilitating a private environment for candid discussions between investors and to serve as a melting pot of ideas connecting Asia’s leading institutional investors under one roof. The first day of the event was geared towards large asset owners such as pension funds, while the second day focused on single and multi-family offices.


2019 Key Trends in Latin American Hedge Funds

Eurekahedge

The Eurekahedge Latin American Hedge Fund Index was up 3.82% as of March 2019 year-to-date, in contrast to the 6.74% gain posted by the MSCI EM Latin America IMI over the same period. The region’s equity markets proved rather resilient throughout the fourth quarter of 2018, which saw the global equity market slumping in the face of the US-China trade war and concerns over economic slowdown. Brazil’s equity market reacted positively to the election of President Jair Bolsonaro, which improved the country’s economic outlook following the dip in mid-2018. Political uncertainties and social unrest continued to plague the region, and together with Argentina’s currency crisis and Venezuela’s economic collapse pushed Latin America’s risk outlook downward. A number of Latin American currencies also depreciated against the US dollar, and in some cases the depreciation led to rising inflation levels.


Latin American Hedge Funds Infographic May 2019

Eurekahedge

Eurekahedge’s Latin American hedge funds infographic sums up the industry as at May 2019. 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.


April 2019

The Eurekahedge Report - April 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 1.06% in March, 4.36% year-to-date. Total assets under management increased by US$1.8 billion during the month as the sector witnessed a performance-based increase of US$9.8 billion while registering net asset outflows of US$8.0 billion. The total size of the industry now stands at US$2.31 trillion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index was up 1.06% in March, wrapping the first quarter of the year gaining 4.36% year-to-date. Hedge fund managers narrowly trailed behind the global equity market as represented by the MSCI AC World Index which gained 1.09% in March. The global equity and bond markets have rallied through the first quarter of 2019, supported by the dovish stance exhibited by major central banks, as well as the optimism over the US-China trade negotiations. On the other hand, concerns over slowing economic growth have persisted through the quarter, with growth forecasts being cut. The majority of hedge fund managers tracked by Eurekahedge recorded positive returns in March, with those focusing on Asia ex-Japan countries posting strongest gains. Despite the positive performance exhibited by hedge fund managers, investor appetite remained muted as the industry saw net investor outflows throughout the month.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index gained 1.06% in March , resulting in the strongest post-crisis Q1 return of 4.36%. Hedge fund managers recorded three consecutive months of positive performance, supported by strength in the global equity and bond markets as central banks shy away from tight monetary policies. Optimism over the progress of the US-China trade talks helped bolster the equity markets around the globe, counterbalancing concerns over economic growth slowdown.


Not all hedge funds are created equal: The hidden gems of the Asia Pacific hedge fund industry

Eurekahedge

ANDA Cruise, FengHe Asia Fund, Golden Pine Fund, KS Asia Absolute Return Fund, Realm High Income Fund, and Segantii Asia Pacific Equity Multi-Strategy Fund outshine peers in 2018 The Asian hedge fund managers tracked by Eurekahedge ended 2018 down 8.71% on average, recording their worst yearly performance since the 2008 global financial crisis. In spite of a strong start in January, the return of market volatilities in February and the escalation of the trade tension between the United States and China pushed the majority of Asian hedge funds into the red for the year. Compared to their global peers, fund managers focusing on Asia suffered heavier blows from the equity market sell-offs in response to the US Federal Reserve’s aggressive rate hikes throughout the year.


2019 Key Trends in Asian Hedge Funds

Eurekahedge

The Eurekahedge Asian Hedge Fund Index was up 4.15% year-to-date as of February 2019, trailing behind the underlying equity market represented by the MSCI AC Asia Pacific IMI which gained 8.56% over the same period. Asian hedge funds recovered from the losses incurred in 2018 as a result of the escalation of the international trade conflict between the world’s two largest economies, and the aggressive Fed rate hikes which triggered equity sell-offs in October and December 2018. In 2019, the Trump administration delayed the scheduled tariff increase to Chinese imported goods, reflecting the progress of the trade talks between the US and China.


Asian Hedge Funds Infographic April 2019

Eurekahedge

Eurekahedge’s Asian hedge funds infographic sums up the industry as at April 2019. 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.


2019 Key Trends in Global Hedge Funds

Eurekahedge

The Eurekahedge Hedge Fund Index was up 3.28% as of February 2019 year-to-date as the industry recovered from the losses suffered in 2018. Last year, hedge funds recorded their worst annual performance since the 2008 global financial crisis as the escalation of the US-China trade war, aggressive rate hikes from the US Federal Reserve, and concerns over slowing global growth weighed on global equities. Going into 2019, the risk sentiment had improved due to the progress of the US-China trade negotiations, which showed that both parties are serious in resolving the conflicts between their trade and industrial policies.


Global Hedge Funds Infographic April 2019

Eurekahedge

Eurekahedge’s global hedge funds infographic sums up the industry as at April 2019. 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.


EMIR REFIT: Impact on Asset Managers

Leonard Ng and Chris Poon - Sidley Austin LLP

Key changes to the scope of EMIR which asset managers should be aware of as a result of EMIR REFIT are -a broadening of the definition of a “financial counterparty” (FC), such that all non-EU funds will be categorised by EU dealers as third-country entity FCs (as opposed to third-country entity NFCs); and -the introduction of an exemption from the clearing obligation for FCs below a certain threshold (FC-s).


How FIRRMA Impacts U.S. Private Equity Funds

Laura Fraedrich, Chase D. Kaniecki, Justin T. Huff and John Cheretis - Jones Day

Last year, the president signed FIRRMA into law, clarifying how CFIUS will treat investments made by private equity funds subject to future regulations, and simultaneously expanding CFIUS' jurisdiction to encompass non-controlling investments in "critical infrastructure" and "critical technology" companies, as well as companies that maintain or collect sensitive data of U.S. citizens (collectively "Sensitive U.S. Businesses"). This expanded jurisdiction will have a significant impact on foreign investors generally, as well as U.S. private equity funds with foreign general or limited partners.


The United States International Development Finance Corporation Enters Private Equity

Christopher M. Vaughn and Philip T. von Mehren - Venable LLP

On October 5, 2018, the president signed Public Law 115-254 into law – the Better Utilisation of Investments Leading to Development Act of 2018 (BUILD Act). The BUILD Act creates the United States International Development Finance Corporation (IDFC), a new wholly owned government corporation. It will replace the Overseas Private Investment Corporation (OPIC) and transfer, among other functions, the Development Credit Authority from the U.S. Agency for International Development (USAID) to the IDFC. It is subject to reauthorisation in seven years.


Women Investing in Women's Health: The Rise of Femtech Companies and Investors in Celebration of Women's History Month

Jessie M. Gabriel and Tara Ravi - Baker & Hostetler LLP

Just a few years ago, investment in women’s health was sparse. Global funding for the femtech sector had barely reached $100 million and there continued to be a glaring lack of research into critical areas such as female heart disease and gynecological disorders. That is finally changing, driven in large part by female funders who have identified the value in the sector and have started putting their money to work.


March 2019

Press Release: Global Hedge Fund Awards to Recognise Top Performing Hedge Fund Managers of 2018

Eurekahedge

Eurekahedge, a market leading alternative fund data provider and research house is pleased to announce the launch of the Global Hedge Fund Awards - the first of its kind industry wide initiative to recognise and award hedge fund managers across the globe. Our elite panel of judges hailing from a mix of public and private pension funds as well as premier funds of hedge funds will pick winners across Americas, Europe & Middle East Africa and Asia Pacific.


The Eurekahedge Report - March 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 0.89% in February and 3.26% year-to-date. Total assets under management decreased by US$1.6 billion during the month as the sector witnessed performance-based increase of US$6.7 billion while registering net asset outflows of US$8.3 billion. The total size of the industry now stands at US$2.32 trillion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index was up 0.89% in February, supported by the continued recovery of the global equity market which pushed the MSCI AC World Index 3.03% higher. The majority of hedge fund managers tracked by Eurekahedge recorded positive returns in February, with those utilising long/short equities and event driven strategies outperforming other mandates. The patient wait-and-see approach to raising rates from the US Federal Reserve and optimistic anticipation over the potential resolution of the US-China trade war helped sustain the global equity market performance throughout the month. Apart from that, slowing economic growth across the globe has prompted central banks to raise concerns over lower inflation and cut their short-term growth forecasts, resulting in lower yields in the bond markets.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index gained 0.89% in February , bringing its year-to-date return to 3.26%. The risk-on sentiment among investors driven by the Fed’s patient stance and optimism over the potential resolution of the US-China trade tension persisted through the month, sending global equity markets on a rally through February. The MSCI AC World Index (Local) gained 3.03% during the month, resulting in 10.61% year-to-date return over the first two months of 2019. On the other hand, growth forecast cuts from developed economies’ central banks raised concerns over lower inflation, sending bond yields lower throughout the month.


Greater China equity hedge funds: Is the bumpy ride over?

Eurekahedge

Greater China equity hedge funds ended 2018 down 14.78% after posting negative monthly returns over the better part of the year as fund managers struggled to generate profits amidst the volatile market. The escalation of the US-China tariff spat, combined with the US Federal Reserve’s aggressive rate hikes throughout the year severely weighed on the equity markets across the emerging markets, and especially China. Difficult trading situation arising from the return of market volatility and equity market sell-offs resulted in substantial performance-driven losses for the managers comprising the region’s US$28.7 billion hedge fund industry.


2018 Overview: Key Trends in North American Hedge Funds

Eurekahedge

The Eurekahedge North American Hedge Fund Index was up 3.66% in January 2019, underperforming the region’s equity markets as represented by the MSCI North America IMI which gained 8.51% over the month. North American hedge fund managers ended 2018 down 2.97% as concerns over the US-China trade tension and fed rate hikes weighed on their returns. Going into 2019, fund managers kicked off the year by recording strong gains in January, thanks to the improving optimism over the US-China trade talks. On the other hand, the US Federal Reserve has adopted a patient, wait-and-see stance for their future rate decisions as a response to the muted inflation caused by the sharp decline of oil prices and the risk of global economic slowdown. The dovish tone exhibited by the Fed acted as a tailwind to the US equity markets and pushed the S&P 500 and DJIA by 7.69% and 7.17% higher respectively in January, recovering a sizeable portion of the steep losses they suffered in December last year.


North American Hedge Funds Infographic March 2019

Eurekahedge

Eurekahedge’s North American hedge funds infographic sums up the industry as at March 2019. 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.


Interview with Eduardo Finkler and Jorge Finkler, Portfolio Managers at FK Capital Fund

Eurekahedge

FK Capital Management Ltd. delivers a distinct value-oriented long/short equity strategy centred on achieving long-term capital growth and avoiding large drawdowns. Based in the Bahamas, the Firm combines an independent view of value investing, a commitment to following game-changing trends and forward-thinking brands poised to capture next-generation consumption patterns driven by Millennials and Gen Z. FK Capital integrates growth into its value investment strategy, with each holding supported by a catalyst that will accelerate long-term earnings. As a long-biased fund that’s poised to capitalise on key demographic and cultural shifts, the fund has significant exposure to global Information Technology and Consumer Discretionary opportunities – where disruption is occurring.


Cayman Vehicles in Asian Structures – An International Outlook

Kate Hodson and David Nelson - Ogier

The Cayman Islands is one of the most utilised international finance centres (IFC) in the Asian finance industry. The largest and most populous continent, Asia covers a diverse cultural landscape, with highly differing economies, laws and regulations and it is against this backdrop that the use of Cayman structures has been established as a legitimate and important channel for capital inflows and outflows between Asia countries and around the globe. In particular, they have been highly utilised across Asia in capital markets, structured finance, M&A, and in the funds industry, most notably in Hong Kong, Singapore, China and Japan.


Five things asset managers and institutional investors need to know about cost transparency in 2019

Osborne Clarke

Disclosure of charges is regulated and standardised for retail investors, but is currently less so for institutional investors. Consequently, institutional investors are finding it difficult to obtain and analyse cost data from asset managers or accurately compare costs across the market. This was one of the findings of the FCA’s Asset Management Market Study in 2017, which prompted the creation of the Institutional Disclosure Working Group (IDWG). Off the back of the IDWG’s recommendations, the ‘Cost Transparency Initiative’ (CTI), a partnership initiative between the Pensions and Lifetime Savings Association, the Investment Association (IA), and the Local government Pension Scheme Advisory Board (LGPS), was launched in November 2018.


Foreign investment in Australian technology: do we need a FIRRMA approach?

Justin Fox - Corrs Chambers Westgarth

Recent changes to the way the United States regulates foreign investment in its technology assets have highlighted an interesting contrast to Australia’s approach. Late last year, President Trump signed into law the Foreign Investment Risk Review Modernisation Act (FIRRMA). FIRRMA significantly expands the type of transactions that are subject to review by the Committee on Foreign Investment in the United States (CFIUS), to include ‘other investments’ involving critical infrastructure, critical technologies or personal data.


Hedge Funds in Guernsey

Andrew Boyce, Annette Alexander and Christopher Anderson - Carey Olsen

The flexible and pragmatic approach adopted by the GFSC in relation to investment funds aimed at the institutional or high net worth investor market has helped the significant growth of this sector in Guernsey. Nowadays, most funds formed in Guernsey tend to be for the institutional or high net worth individual markets, with hedge funds, funds of hedge funds, private equity and property funds being especially popular. Guernsey is particularly keen to attract high quality hedge fund business. Following consultation with the industry, the GFSC released a guidance note in November 2003 setting out a more relaxed framework for the operation of hedge funds, which included waivers of the various fund rules in four key areas.


The Top Ten Regulatory and Litigation Risks for Private Funds in 2019

Timothy Mungovan, Joshua Newville, Sam Waldon, Michael Hackett, Tony Drenzek, Will Dalsen, Brian Hooven, Alexandra Bargoot, Lucy Wolf and Hena Vora - Proskauer Rose LLP

An increasingly sophisticated and active OCIE division, innovative market disruptors, a maturing credit cycle, and a philosophical change in how the private fund industry views and utilizes litigation are likely to lead to increased regulatory scrutiny and litigation risk for advisers (and their funds) in 2019. With that backdrop, we are pleased to present our Top Ten Regulatory and Litigation Risks for Private Funds in 2019.


The UK's New Property Tax Regime for Non-UK Residents: A Simple Tool Kit for Investors

Nick Thornton and Will Gay - Fried Frank

The UK's new regime introducing a charge to UK tax on non-UK residents' investment gains from UK commercial real estate is unfortunately complex, making it difficult for investors to understand the practical impact on any particular existing or proposed holding structure. However, although the regime is not yet even in force and its impact on the market still in process, it is possible to suggest some basic rules of thumb which may be helpful in starting an analysis.


February 2019

The Eurekahedge Report - February 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index in January. Total assets under management increased by US$16.9 billion during the month as the sector witnessed performance-based increase of US$22.1 billion while registering net asset outflows of US$5.3 billion. The total size of the industry now stands at US$2.31 trillion.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index rallied 2.32% in January, supported by the strength in global equity markets which pushed the MSCI AC World Index 7.36% higher, recovering from the losses it suffered back in December. Cautious tone from the Federal Reserve and positive expectations on the US-China trade talk resulted in strong gains across the global equity and fixed income markets during the month, despite lingering concerns over slowing economic growth. Weaker US dollar and improving trade outlook acted as tailwinds for fund managers with exposure toward Asia and emerging markets in general, resulting in positive returns across geographic mandates throughout the month.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index kicked off the year with a solid showing, as it gained 2.32% in January, in contrast to how the index declined 4.08% last year, following five consecutive months of losses. Dovish stance exhibited by the Federal Reserve signalled higher level of flexibility in future rate changes, and together with greater optimism over trade talk progresses between the United States and China they supported the global equity market performance throughout the month.


The case of funds of hedge funds: extra cost vs. diversification

Eurekahedge

The Eurekahedge Funds of Funds Index ended 2018 down 4.58%, trailing behind the average hedge fund which would have lost 4.08% throughout the year. The persistent underperformance of multi-manager funds in terms of net returns has sparked questions over the value proposition offered by such structure, which was supposed to provide investors access to a wider pool of fund managers, as well as cheaper due diligence costs for smaller investors planning to invest in multiple single manager hedge funds.


2019 Key Trends in UCITS Hedge Funds

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 embodied by strong regulation resulting to a high level of investors protection with certain restrictions such as liquidity of the underlying assets and leverage caps to provide added transparency to investors.


2018 Overview: Key Trends in Islamic Hedge Funds

Eurekahedge

The Islamic finance industry is a niche market predominantly serving the needs of the world’s Muslim population. Products marketed under the umbrella of Islamic finance comply with a different investment philosophy as opposed to traditional investment philosophy which the rest of the world are familiar with. Under a Shariah-compliant framework, transactions which are considered to be unethical under Islamic law are prohibited and instead, fund managers invest in products which are compliant with Islamic guidelines.


UCITS Hedge Funds Infographic February 2019

Eurekahedge

Eurekahedge’s UCITS hedge funds infographic sums up the industry as at February 2019. 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.


Developments in the Luxembourg Financial Sector

Patrick Goebel and Christine A. Renner - Dechert LLP

Luxembourg has transposed MiFID II into its national law, albeit five months after the deadline for doing so. In other matters, the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF) issued two circulars in August: one reshaping the organisational rules for Luxembourg UCITS management companies, self-managed UCITS, authorised AIFMs and internally managed AIFs; the second, providing guidance as to the requirements for Luxembourg depositaries servicing Luxembourg AIFs (other than Part II UCIs marketed to retail investors), as well as SIFs and SICARs that do not qualify as AIFs. These developments are discussed below.


How SEC's List of Examination Priorities for 2019 Will Affect Private Fund Advisers

Michael R. Butowsky and Emily O. Harris - Jones Day

The Situation: The Office of Compliance Inspections and Examinations ("OCIE") of the U.S. Securities and Exchange Commission has released its 2019 Examination Priorities ("Report"). The Result: The Report details key areas where OCIE currently intends to focus its examination resources in 2019. The Report's key areas that should be of particular interest for private fund advisers (e.g., advisers to real estate, hedge, private equity, and venture capital funds) include fees and expenses, conflicts of interest, portfolio management and trading, digital assets, and cybersecurity.


Legislative Proposal to Ease Establishment and Fundraising of Domestic Private Equity Funds — Tax Treatment of foreign Funds of Funds to be Clarified

Ville Alahuhta and Mikko Alakare - Castrén & Snellman

On 13 December 2018, the Finnish Government published a legislative proposal aimed at eliminating problems in tax legislation relating to the establishment of private equity funds in the form of limited partnerships. The taxation of investors in private equity funds operating in a form of a Finnish limited partnership has, in certain respects, been based on established case law and tax practice. The taxation of foreign investors was originally eased through a special provision enacted in 2005 (Income Tax Act section 9(5)). When the special provision applies, an investor, having limited tax liability in Finland and being a limited partner in Finnish PE fund operating in a form of a limited partnership, is taxed for its share of the income of the fund only to the extent the income would be taxable if received directly by that investor.


January 2019

The Eurekahedge Report - January 2019

Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was down 1.31% in December, down 3.85% year-to-date. Total assets under management decreased by US$23.5 billion during the month as the sector witnessed performance-based decrease of US$11.3 billion while registering net asset outflows of US$12.2 billion. The total size of the industry now stands at US$2.34 trillion.


Eurekahedge Asian Hedge Fund Awards 2019

Eurekahedge

The 16th annual Eurekahedge Asian Hedge Fund Awards ceremony took place on 24 May 2019 at JW Marriott South Beach. Find out who the winners are.


Asset Flows Update

Eurekahedge

The Eurekahedge Hedge Fund Index was down 1.31% in December , outperforming the MSCI AC World Index which declined 7.61% in what turned out to be the worst month of 2018 for global equity markets. Concerns over the Fed’s stance which turned out to be less Dovish than what investors expected triggered major equity sell-offs around the globe, and sent major equity indices plummeting during the month.


Hedge Fund Performance Commentary

Eurekahedge

The Eurekahedge Hedge Fund Index ended the month of December down 1.31% , dragging its year-to-date decline to 3.85% after five consecutive months of losses. Concerns over the US treasuries yield curve inversion and further Fed tightening in 2019 triggered a sell-off across the global equity markets, marking December as the worst month of 2018 for equity markets.


Robust investor allocations toward ILS funds despite weak 2018

Eurekahedge

The Eurekahedge ILS Advisers Index ended 2018 down 2.93%, recording its second consecutive year of losses after 2017, during which the index slumped 5.60%. The catastrophic losses incurred by Hurricane Florence in September and Hurricane Michael in October weighed on the ILS fund managers’ returns throughout the fourth quarter of the year.


2018 Overview: Key Trends in Global Hedge Funds

Eurekahedge

Hedge fund managers were on track to record their worst year since the 2008 global financial crisis as the combined onslaught of the global trade tension, Fed rate hikes, and various political concerns weighed on their returns. The Eurekahedge Hedge Fund Index was down 2.53% as of November 2018 year-to-date, slightly ahead of the underlying equity markets as represented by the MSCI AC World Index which slumped 2.72% over the same period. The industry kicked off the year with strong performance throughout January 2018, continuing the trend observed by the hedge fund industry in 2017. However, market uncertainty arose when the Trump administration imposed higher tariffs against imported Chinese goods due to their alleged unfair trade practices.


Global Hedge Funds Infographic January 2019

Eurekahedge

Eurekahedge’s global hedge funds infographic sums up the industry as at January 2019. 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.


Interview with Dr. Matthew Swann, Principal of Hiscox Re Insurance Linked Strategies Ltd

Eurekahedge

Matthew Swann is Principal, Hiscox Re Insurance Linked Strategies, a US$1.6+ billion ILS fund manager within global specialty insurance group Hiscox Ltd (LND: HSX). Matthew joined Hiscox in 2007 as a catastrophe modeler where he developed retrocession pricing tools before moving to reinsurance underwriting in 2011. He joined Hiscox Re ILS in 2015 as Portfolio Manager and is currently responsible for advising on investment and product strategy, and business development. Matthew holds a geography degree from the University of Oxford and a PhD in climate prediction from the University of East Anglia.


Fund Management Made Simple Using Securitisation

Bo Wei Tang, FlexFunds

Securitisation is the issuance of tradable financial instruments backed by a single asset or a group of assets. Through securitisation, assets receive an additional layer of accessibility in the financial markets, allowing for the funding of an investment strategy, or for financing based on an organisation’s creditworthiness, cash flow and/or collateral. The result of securitisation is a tradable financial instrument that can be purchased globally through brokerage accounts.


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