Performance Of Greater China And North America Equities Hedge FundsGuest Post
Recent losses nearly wiped Greater China equity mandate’s relative outperformance since end 2016
Performance of Greater China and North America Equities Hedge Funds
The recent losses posted by Greater China equity fund managers nearly depleted their relative outperformance over their North American counterparts accumulated since the end of 2016. Owing to the underlying regional equity market rally, equity fund managers focusing on Greater China region returned 32.06% in 2017, vastly outperforming equity fund managers focusing on North America, who returned an average of 9.70%. However, the Greater China mandate has been under severe pressure from the ongoing trade tension and weak currency. The Eurekahedge Greater China Long Short Equities Hedge Fund Index was down 20.01% as of October 2018 year-to-date.
Hedge Fund Performance by Region (2018 YTD)
Hedge Fund Performance by Strategy (2018 YTD)
North America (+0.49% YTD)
-US$1.0 billion AUM YTD
North American funds barely avoided dipping back into the red year-to-date, as the losses they suffered in October wiped most of the gains they made in 2018. The Eurekahedge North American Hedge Fund Index declined 2.67% throughout the month, weighed by the weakness in the region’s equity markets.
Hedge Fund Management Fees
Long Short Equities (-3.31% YTD)
+US$8.2 billion AUM YTD
Long short equities hedge fund managers bore the brunt of the equity market movement, which left them down 3.58% over the month. More than 80% of the fund managers utilising this strategy posted losses in October, leading to an industry-wide performance-based decline of US$13.8 billion.
Hedge Fund Launches and Closures
Article by Eurekahedge