Hedge fund performance remains muted as emerging market mandate languishes under trade concerns

The asset-weighted Mizuho-Eurekahedge Index – USD was down 0.41 per cent in August, underperforming the equal-weighted Eurekahedge Hedge Fund Index which declined 0.05 per cent throughout the month.

Nearly half of the fund managers overseeing assets in excess of USD1 billion posted losses in August.
 
North American fund managers generated 1.04 per cent return in August, outperforming their peers from other regions, as they enjoyed the support of the underlying equity market rally. On a year-to-date basis, the mandate was up 3.39 per cent, indicating their resilience against the recent trade tension.
 
Long/short equities hedge fund managers managed to stay in positive territory, returning 0.83 per cent as of August 2018 year-to-date. Investor allocations remained rather strong, with an estimated USD14.8 billion of net investor flows over the first eight months of the year.