November proved to be another challenging month in what is proving to be one of the toughest years, performance-wise, for global hedge funds. According to Chicago-based Hedge Fund Research, the HFRI Fund Weighted Composite Index fell 0.92 per cent putting this year’s losses at over 4 per cent and leaving managers a mountain to climb if they intend on finishing 2011 in positive territory. Unfortunately, for Asia ex-Japan hedgies, November proved even worse than the global index. The HFRI Emerging Markets: Asia ex-Japan Index fell 4.3 per cent, putting this year’s losses at an unpalatable 15.57 per cent. Interim figures for Singapore-based Eurekahedge are moderately better. Its Asia ex-Japan Index recorded losses of 3.52 per cent, putting YTD returns at -11.31 per cent. Last year’s returns through December were +10.09 per cent.
Looking across strategies, Relative Value and CTA/Managed Futures both delivered positive returns for November, +1.22 per cent and +0.74 per cent respectively. That puts CTA funds at +16.72 per cent for the year: by the far the most successful strategy in the region and a good indication of the hedge against volatility this strategy can offer. Fixed Income and Event-Driven funds fell 2.60 per cent and -.4 per cent. Equity l/s funds, which dominate Asia’s hedge fund industry, were down 3.73 per cent. That leaves them -12.78 per cent YTD. It’s certainly not been an easy year for stock pickers.