Almost 80% Of New Hedge Funds Charge Less Than 2%: EurekahedgeGuest Post
The Eurekahedge Hedge Fund Index rose 2.35% in January 2019, recording its strongest January performance since 2006 as fund managers recovered from the losses sustained during the last few months of 2018. The index ended 2018 with its weakest yearly showing since the global financial crisis, as it slumped 4.16%.
January Performance of the Eurekahedge Hedge Fund Index Since 2006
Despite the strong performance of the hedge fund industry, preliminary data for January revealed that investor redemptions stood at US$5.3 billion, in contrast to the US$22.1 billion performance-driven growth recorded. Total asset under management for the global hedge fund industry stood at US$2,309.2 billion as of January 2019.
Hedge Fund Performance by Region (2019 YTD)
Hedge Fund Performance by Strategy (2019 YTD)
Proportion of Fund Launches with ≥2% Management Fees
Proportion of Fund Launches with ≥20% Performance Fees
A total of 601 fund launches and 730 liquidations were recorded in 2018, marking a third consecutive year in which fund closure activities outpace launches. Among these funds launched last year, 22.2% charged no less than 2% management fees, and 55.5% of them charged at least 20% performance fees. Going into 2019, 67 launches were recorded thus far, 10.3% of which charged at least 2% management fees, while the proportion of launches with no less than 20% performance fees stood at 22.4% for the year.
Article by Eurekahedge