Research

The Eurekahedge Report – February 2012

Introduction

Hedge funds started 2012 on a strong note, as the composite Eurekahedge Hedge Fund Index rose 2.1%1 on the month. Rallying equity markets, on the back of a sharp increase in risk appetite, coupled with marked reversals across some other asset classes – such as commodities and currencies – were among the factors responsible for the month’s gains. Additionally, better than expected economic data coupled with easy monetary conditions (in the form of bond purchases) further improved investor sentiment during January. Total hedge fund assets under management climbed back above the US$1.72 trillion mark, through US$11.35 billion of performance based growth and US$3.66 billion of net asset inflows   

Highlights of hedge fund performance and asset flows for the month are as follows:

January 2012 US$ billion
Allocation (Inflows) 21.65
Redemption (Outflows) -17.99
Net Asset Flows 3.66
Positive Performance (Growth) 14.79
Negative Performance (Decline) -3.44
Total 11.35
Overall Total 15.02

 

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Footnote

1 Based on 70.58% of funds which have reported January 2012 returns as at 20 February 2012.



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