Trade War, Rate Hikes, Slowing Growth – Hedge Funds Recorded Best Outperformance Over Equities Since 2011 – ValueWalk Premium
Hedge Funds

Trade War, Rate Hikes, Slowing Growth – Hedge Funds Recorded Best Outperformance Over Equities Since 2011

The Mizuho-Eurekahedge Index (USD), an asset-weighted index representing the global hedge fund industry performance was down 0.39% in December, bringing its year-to-date loss to 4.09% amidst the global equity market sell-off. Despite ending the year in the red, hedge fund managers recorded their best outperformance over the global equity markets since 2011, as they returned 7.70% more than the MSCI ACWI IMI (USD) throughout 2018.

Q4 hedge fund letters, conference, scoops etc

Yearly Outperformance of Hedge Fund Managers Against Equity Markets

Hedge Funds

Historically, the Mizuho-Eurekahedge Index (USD) has outperformed underlying equity markets during periods of market distress, such as the years 2008 and 2011, during which the index outperformed global equity markets by 28.52% and 7.80% respectively.

Hedge Fund Performance by Region (2018 YTD)

Hedge Funds

Hedge Fund Performance by Strategy (2018 YTD)

Hedge Funds

Hedge Fund 2018 Monthly Returns Distribution

Hedge Funds


Proportion of Fund Launches with ≥20% Performance Fees

Hedge Funds

Hedge Fund Launches and Closures

Hedge Funds

A total of 601 fund launches and 613 liquidations were recorded in 2018, marking a third consecutive year in which fund closure activities outpace launches. Among these newly launched funds, 55.7% charged no less than 20% performance fees, compared to 45.8% back in 2017. However, both figures are still significantly lower than what was observed prior to the financial crisis, during which an overwhelming majority of hedge funds charged 20% performance fees or higher.

Hedge Funds

Article by Eurekahedge


X
Saved Articles
X
TextTExtLInkTextTExtLInk

0