News & Events Archive

Archive 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)

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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

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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.