Hedge funds were up 1.28 per cent in October with 2017 year-to-date gains coming in at 6.99 per cent – roughly 77 per cent of fund managers are in positive territory year-to-date, while almost 32 per cent have posted double digit gains.
That’s according to the October 2017 Eurekahedge Report which reveals that total hedge fund assets grew by USD158.64 billion over the past ten months with USD85.4 billion attributed to investor inflows, while managers posted performance-based gains of USD73.2 billion. The industry’s total assets currently stand at USD2.38 trillion. Investors have been selective in their allocations across strategies with long/short equities and arbitrage hedge funds seeing stronger subscriptions year-to-date.
Smaller funds managing assets in the range of USD100-500 million have raised almost USD28 billion this year, while the billion dollar club has accounted for USD48 billion in inflows as investor appetite for hedge funds continues to improve.
AUM for the North American hedge fund industry has reached a record high of USD1.59 trillion as of October 2017. Investor subscriptions for 2017 year-to-date stood at USD51.7 billion, with USD43.7 billion of performance-based gains recorded over the same period of time.
Distressed debt managers posted their fifth consecutive month of redemptions, totalling USD1.1 billion while recording modest performance-based gains of USD1.1 billion on a year-to-date basis, seeing its asset base contract by USD0.33 billion year-to-date.
As of October 2017 year-to-date, Asian funds have recorded a growth in AUM of USD19.2 billion, with USD13.1billion accounted for by performance-based gains while the remainder, roughly USD6.1 billion, came through net investor allocations. Asia ex-Japan managers were up 18.55 per cent for the year, led the table among regional peers with underlying Greater China and Indian managers up 26.66 per cent and 23.62 per cent year-to-date respectively. Japan focused funds were up 10.77 per cent over the same period.
Latin American Hedge fund Index has posted the highest three and five-year annualised returns compared to its underlying market as represented by MSCI EM Latin America Index IMI (Local).
