Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

22506

Eurekahedge reports hedge funds down in October

RELATED TOPICS​

Eurekahedge reports that hedge funds declined 0.35 per cent during the month of October – their first monthly loss after seven straight months of gains. 

The firm writes that despite being in the red this month, hedge funds have outperformed underlying markets, with the MSCI AC World Index (Local) down 1.38 per cent in October. On a year-to-date basis, hedge funds were up 2.98 per cent with roughly 20 per cent of managers posting double digit returns compared with 15 per cent over the same period last year. They have surpassed 2015, however, which saw an annual gain of just 1.65 per cent.
 
Eurekahedge writes: “While the US Presidential Elections loomed in the background, markets moved in the rhythm of a series of economic data releases as well as central bank meetings this month. The rate hike action from the Federal Reserve seems quite likely as strong US macro data and a hawkish Fed set the stage for tapering in December though the outcome of the Presidential Elections is yet to be seen. Meanwhile global bond markets saw a sell off on the back of strong economic data from the US, UK as well as concerns over a potential end to the ECB's QE program early next year. The concern remains that with a bottoming out in commodity prices and improving real data, inflation might materialise at a pace not anticipated by major central banks.”
 
October highlights include the fact that emerging market mandates lead the gains in 2016 up 10.18 per cent – Latin American, Eastern Europe & Russia and India mandated hedge funds are up 22.36 per cent, 14.17 per cent and 13.01 per cent respectively.
 
Among developed mandates, Japan hedge fund managers were up 1.52 per cent while North American and European managers were down 0.47 per cent and 0.30 per cent respectively. On a year-to-date basis, North American hedge fund managers were up 4.81 per cent while their European and Japanese counterparts were in the red, losing 0.60 per cent and 1.66 per cent respectively.
 
Distressed debt hedge funds posted the best returns in October and on a year-to-date basis, gaining 2.27 per cent and 10.99 per cent respectively. The US56.6 billion distressed debt hedge funds sector has grown its asset base by almost USD2.0 billion since March 2016.
 
The Eurekahedge CTA/Managed Futures Hedge Fund Index posted the steepest decline among strategic mandates in October and was down 2.11 per cent, with underlying trend following strategies declining 3.71 per cent while commodity focused hedge funds lost 1.19 per cent.
 
Asia ex-Japan hedge fund managers were up 0.51 per cent during the month, with underlying India mandated hedge funds gaining 4.60 per cent while Greater China focused hedge funds declined 1.00 per cent over the same period.
 

Latest News

New research from Carne Group reveals fund managers expect alternative asset classes to see the..
Brown Brothers Harriman & Co has expanded its relationship with AllianceBernstein (AB), by adding to..
The trading and investment platform eToro has extended its proxy voting feature to all stocks..

Related Articles

The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by