This month’s issue of The Eurekahedge Report covers the US$2184 billion global fund industry and its infographic along with our regular coverage of monthly returns, performance and asset flows.
Q3 2020 hedge fund letters, conferences and more
Report Highlights
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.
