The benchmark Eurekahedge Hedge Fund Index was down 0.05% in October 2020 and up 3.25% year-to-date. Total assets under management decreased by US$14.5 billion during the month – the sector witnessed performance-based losses of US8.0 billion while registering net asset outflows of US$6.5 billion. The total size of the industry now stands at US$2,136.2 billion.
The Eurekahedge Hedge Fund Index was down 0.05% in October 2020, outperforming the global equity market as represented by the MSCI ACWI (Local), which lost 2.29% over the same period. The reimposition of national lockdowns across Europe, uncertainty in the outcome of the US presidential election, and the breakdown in US fiscal stimulus talks, resulted in the negative performance of global equities during the month. The acceleration of daily COVID-19 cases in Europe forced the authorities to reimpose restrictive measures to curb the increasing number of new infections, which acted as a headwind to the performance of the equity market in the region.
The Eurekahedge Hedge Fund Index was down 0.05% in October 2020, outperforming the global equity market as represented by the MSCI ACWI (Local), which slipped 2.29% over the same period. Global equities ended the month in negative territory due to the reimposition of national lockdowns across Europe, uncertainty in the outcome of the US presidential election, and the breakdown in US fiscal stimulus talks.
Emerging market hedge funds were up 5.11% over the first three quarters of 2020, outperforming their developed market counterparts in North America, Europe and Japan which generated 3.99%, -1.51% and -3.37% respectively. In the first quarter of 2020, the Eurekahedge Emerging Markets Hedge Fund Index tumbled 10.66% as the coronavirus pandemic broke out in in Wuhan, China, forcing Chinese authorities to put the city on lockdown on January 23. As the pandemic worsened, the lockdown was extended to the rest of Hubei province and the World Health Organisation on January 30 declared the outbreak a global public-health emergency. On March 11 2020, the World Health Organisation officially declared the outbreak a pandemic as coronavirus cases began to increase sharply in many parts of the world and forced many countries to implement lockdown measures in a bid to halt the rapidly escalating number of cases and prevent healthcare systems from being overwhelmed.
Eurekahedge’s emerging market hedge funds infographic sums up the industry as at November 2020. 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.