Hedge funds were down 0.82 per cent in December, outperforming the MSCI AC World Index (Local) which declined 7.61 per cent over the month. A vast majority of the hedge fund managers tracked by Eurekahedge outperformed the market index in December.
On an asset-weighted basis, hedge funds lost 0.02 per cent in December, bringing their year-to-date losses to 3.74 per cent, as captured by the Mizuho Eurekahedge Hedge Fund Index (USD).
North American fund managers lost 3.29 per cent in December, as the underlying equity markets recorded their worst month of 2018. The S&P 500 index declined 9.18 per cent in December. The Eurekahedge North America Long Short Equities Hedge Fund Index recorded a loss of 4.63 per cent during the month.
Over in Asia, concerns over slowing growth weighed on the region’s equity markets. The Eurekahedge Asia ex Japan Hedge Fund Index was down 2.82 per cent throughout the month, bringing its year-to-date loss to 10.66 per cent.
The Eurekahedge European Hedge Fund Index slumped 0.90 per cent in December, with the underlying long/short equities mandate down 1.81 per cent as the region’s equity markets remained vulnerable to uncertainties surrounding Brexit negotiation and the end of ECB’s asset purchasing programme.
Performance across strategic mandates was a mixed bag in December, with macro hedge funds leading the pack by gaining 1.56 per cent over the month. On the other end of the spectrum, event driven hedge funds were down 2.78 per cent.
The Eurekahedge CTA/Managed Futures Hedge Fund Index gained 0.93 per cent during the month despite weakness in the energy sector following the decline in oil prices. On a year-to-date basis, the index was down 3.17 per cent and the mandate has suffered USD15.9 billion of performance-based losses and USD22.2 billion of net investor redemptions.
Fund managers utilising AI/machine learning strategies were up 2.17 per cent in December, after ending their streak of losses which placed them on track to record their worst year since the inception of the Eurekahedge AI Hedge Fund Index. Over the entire 2018, the index was still down 2.97 per cent.
The Eurekahedge Crypto-Currency Hedge Fund Index was down 8.74 per cent in December, as Bitcoin price nearly touched the USD3,000 level in the middle of the month. The index has wiped 68.88 per cent of its value throughout 2018. In comparison, the index soared 1,708.50 per cent in 2017, supported by the rally in crypto-currency prices during the year.
