October losses almost wipe out relative outperformance of Greater China equity hedge funds

The recent losses posted by Greater China equity fund managers nearly depleted their relative outperformance over their North American counterparts accumulated since the end of 2016, according to figures released by Eurekhedge.

Owing to the underlying regional equity market rally, equity fund managers focusing on Greater China region returned 32.06 per cent in 2017, vastly outperforming equity fund managers focusing on North America, who returned an average of 9.70 per cent.
 
However, the Greater China mandate has been under severe pressure from the ongoing trade tension and weak currency. The Eurekahedge Greater China Long Short Equities Hedge Fund Index was down 20.01 per cent as of October 2018 year-to-date.
 
North American funds barely avoided dipping back into the red year-to-date, as the losses they suffered in October wiped most of the gains they made in 2018. The Eurekahedge North American Hedge Fund Index declined 2.67 per cent throughout the month, weighed by the weakness in the region's equity markets.