Global hedge funds down 0.76% in September and up 3.86% in Q3Jacob Wolinsky
Global hedge funds were down 0.76% in September and up 3.86% in Q3 2020. In terms of year-to-date returns, the Eurekahedge Hedge Fund Index was up 3.22%, outperforming the MSCI ACWI (Local) by 4.24%. Around 60% of the Eurekahedge Hedge Fund Index’s constituents have outperformed the global equity market in 2020.
Assets under management for the global hedge funds industry have rebounded increasing by US$120.0 billion over the six-month period ending September 2020. This has come from performance-driven gains of US$122.8 billion partially offset by net investor outflows of US$2.8 billion. This marks a sharp recovery following US$264.1 billion asset decline in Q1 2020.
The Eurekahedge North American Hedge Fund was up 0.69% during the month, outperforming the S&P 500 which was down 4.10%. In terms of year-to-date performance, North American hedge funds were up 3.74% over the first three quarters of 2020, outperforming their European counterparts who were down 1.48% over the same period.
The Eurekahedge Greater China Hedge Fund Index was down 1.59% in September, outperforming the Hang Seng and Shenzhen Composite by 5.23% and 4.77% respectively. Greater China hedge funds gained 9.29% return in Q3, bringing their cumulative return since end-March to 27.38%.
The Eurekahedge Long Short Equities Hedge Fund was down 0.77% in September, bringing its year-to-date return to 4.56%. In the third quarter of 2020, long/short equities hedge funds gained 5.49%, benefitting from the strong performance of the global equity market, which brings their cumulative return since end-March to 18.34%. Around 30% of its total constituents have generated a double-digit return over the first three quarters of 2020.
The Eurekahedge Emerging Market Hedge Fund Index was down 1.50% in September, bringing its YTD return to 5.56%. In terms of Q3 performance, emerging market mandated funds were up 4.68%, outperforming their developed market mandated funds in North America and Europe who returned 4.60% and 3.06% over the same period respectively.
Hedge funds utilising structured credit strategies were up 1.14% during the month, extending their 6-month trailing return to 17.39% since end-March as captured by the Eurekahedge Structured Credit Hedge Fund Index. The accommodative monetary policy of the Federal Reserve and renew concerned surrounding the increasing COVID-19 cases, resulted in lower yields that supported the performance of the fund managers.
Fund managers focusing on cryptocurrencies were down 12.57% over the month, bringing their year-to-date return to 63.06%. In terms of Q3 performance, the Eurekahedge Crypto-Currency Hedge Fund Index was up 31.37% compared to 17.08% of Bitcoin.