Research

The Eurekahedge Report - October 2021

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

October 2021 | 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

October 2021 | 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

October 2021 | 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

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)

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.