North American Hedge Funds

The global hedge fund industry AUM has grown by US$27.0 billion as of April 2019 year-to-date: Eurekahedge

The May 2019 Eurekahedge Report has been released

Q1 hedge fund letters, conference, scoops etc

Key highlights for April 2019:

  • The Eurekahedge Hedge Fund Index gained 1.06% in April, after recording one of its strongest Q1 returns post-crisis. On a year-to-date basis, the index was up 5.15%, and roughly 21.8% of the hedge fund managers comprising it have recorded double-digit gains over the first four months of the year.
  • The global hedge fund industry AUM has grown by US$27.0 billion as of April 2019 year-to-date. Final Q1 2019 net outflows figure stood at US$46.4 billion, just under half of the investor redemptions totalling US$94.7 billion seen in the final quarter of 2018.
  • The Eurekahedge Asia ex Japan Hedge Fund Index was up 7.87% year-to-date, supported by the recovering Asian equity markets throughout the first four months of 2019. The Asia ex-Japan mandate has witnessed US$2.4 billion of investor redemptions year-to-date, despite robust performance gains totalling US$7.6 billion over the same period.
  • North American hedge fund managers were up 1.36% in April, with the underlying long/short equities mandate up 2.07% during the month. Positive earnings surprises and ongoing dovish stance from the Fed helped renew investors’ optimism in the region’s equity market. On a year-to-date basis, the Eurekahedge North American Hedge Fund Index was up 6.73%.
  • The Eurekahedge CTA/Managed Futures Hedge Fund Index gained 0.81% in April, with mixed returns among its constituents. Rising oil prices during the month was a major performance contributor, while slumping metal prices generated losses for some managers. The strategic mandate has seen investor redemptions totalling US$10.4 billion year-to-date.
  • The Eurekahedge ILS Advisers Index slumped 0.50% in April, bringing its year-to-date performance into the red as losses from last year’s Atlantic hurricane season continued to weigh on cat bond performance. ILS hedge fund managers suffered considerable losses from the recent hurricane seasons in 2018 and 2017, during which the index was down 3.92% and 5.60% respectively. However, investor interest level has remained robust through the recent years, with an estimated US$18.9 billion of net allocations made into the ILS hedge fund space since the beginning of 2017.
  • The Eurekahedge Crypto-Currency Hedge Fund Index gained 3.71% in April, bringing their year-to-date return up to 18.10%. Crypto hedge fund managers trailed behind Bitcoin, which rallied 26.22% in April and 33.27% throughout the first four months of 2019.

2019 Key Trends in Latin American Hedge Funds

North American Hedge Funds

North American Hedge Funds

North American Hedge Funds

North American Hedge Funds

North American Hedge Funds

The Eurekahedge Hedge Fund Index gained 1.06% in April, after recording one of its strongest Q1 returns post-crisis. Hedge fund managers have recorded four consecutive months of positive performance since the beginning of 2019, supported by strength in the global equity and bond markets which resulted from encouraging economic data and accommodating central bank policies. On a year-to-date basis, hedge fund managers are up 5.15% as of April 2019. Positive earnings surprises helped renew investors’ optimism in the global equity market, which rallied 3.38% during the month as represented by the MSCI ACWI (Local). Optimism over the progress of the US-China trade talks helped bolster the equity markets around the globe over the first four months of the year, counterbalancing concerns over economic growth slowdown. However, recent development of the US-China negotiations pointed towards another escalation of the trade tension, with the US president announcing more tariffs in early May.

Approximately 72.3% of the hedge fund managers tracked by Eurekahedge posted positive returns in April, and 21.8% managed to generate double-digit gains year-to-date. Japanese and North American fund managers outperformed their peers focusing on other regions in April. The two mandates were up 1.37% and 1.36% respectively during the month. Looking at strategic mandates, long/short equities hedge funds were up 1.44%, trailing behind event driven hedge funds, which gained 1.73% over the month.

April 2019 and March 2019 returns across regions

North American Hedge Funds

Looking at year-to-date returns, Asia ex-Japan and North America mandates posted the strongest returns on the back of the respective regions’ equity market performance. The two mandates were up 7.87% and 6.73% respectively over the first four months of the year. Meanwhile, European funds lagged behind with 3.57% gain year-to-date.

2019 returns across regions

North American Hedge Funds

Mizuho-Eurekahedge Asset Weighted Index

The asset-weighted Mizuho-Eurekahedge Index – USD gained 1.19% in April, after ending 2018 down 4.30%. It should also be noted that the Mizuho-Eurekahedge Index is US dollar denominated, and during months of strong US dollar gains, the index results include the currency conversion loss for funds that are denominated in other currencies.

Most of the Mizuho-Eurekahedge indices posted positive returns in April, with the Mizuho-Eurekahedge Top 100 Index gaining 1.47% over the month. In terms of year-to-date returns, all Mizuho-Eurekahedge indices were in positive territory, with Asia Pacific and long/short equities managers posting the strongest returns of 5.67% and 4.74% respectively as of April 2019, thanks to the strong performance of the equity market since the start of the year.

Mizuho-Eurekahedge Indices

April 2019 returns

North American Hedge Funds

Mizuho-Eurekahedge Indices

2019 year-to-date returns

North American Hedge Funds

CBOE Eurekahedge Volatility Indexes

The CBOE Eurekahedge Volatility Indexes comprise four equally-weighted volatility indices – long volatility, short volatility, relative value and tail risk. The CBOE Eurekahedge Long Volatility Index is designed to track the performance of underlying hedge fund managers who take a net long view on implied volatility with a goal of positive absolute return. In contrast, the CBOE Eurekahedge Short Volatility Index tracks the performance of underlying hedge fund managers who take a net short view on implied volatility with a goal of positive absolute return. This strategy often involves the selling of options to take advantage of the discrepancies in current implied volatility versus expectations of subsequent implied or realised volatility. The CBOE Eurekahedge Relative Value Volatility Index on the other hand measures the performance of underlying hedge fund managers that trade relative value or opportunistic volatility strategies. Managers utilising this strategy can pursue long, short or neutral views on volatility with a goal of positive absolute return. Meanwhile, the CBOE Eurekahedge Tail Risk Index tracks the performance of underlying hedge fund managers that specifically seek to achieve capital appreciation during periods of extreme market stress.

Returns were mixed among the CBOE Eurekahedge indices, with the CBOE Eurekahedge Short Volatility Hedge Fund Index up 1.23% as market volatility remained muted in April. In contrast, hedge fund managers utilising long volatility strategies lost 2.32% during the month. On a year-to-date basis, long volatility hedge fund managers were down 8.27%.

CBOE Eurekahedge Volatility Indexes

April 2019 returns

North American Hedge Funds

CBOE Eurekahedge Volatility Indexes

2019 year-to-date returns

North American Hedge Funds

Summary monthly asset flow data since January 2013

North American Hedge Funds


Eurekahedge

Launched in 2001, Eurekahedge has a proven track record spanning over 16 years as the world’s largest independent data provider and alternative research firm specialising in global hedge fund databases and research. Headquartered in Singapore with offices in New York and Philippines, the global expertise of our research team constantly adapts to industry changes and needs, allowing Eurekahedge to develop and offer a wide array of products and services coveted by institutional investors, family offices, accredited investors, qualified purchasers, financial institutions and media sources. In addition to market-leading hedge fund databases, Eurekahedge’s other business functions include hedge fund research publications, due diligence services, investor services, analytical platforms and risk management tools.


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