The Eurekahedge Hedge Fund Index gained 0.86 per cent in February, supported by the global equity market which continued to rebound over a potential resolution of the US-China trade friction.
Hedge fund managers focusing on developed markets and Asia posted gains during the month, while Latin America and Eastern Europe mandates languished into the red. North American fund managers gained 1.46 per cent during the month, while those focusing on Asia ex-Japan generated 2.77 per cent returns.
On a year-to-date basis, the two mandates were up 5.01 per cent and 5.32 per cent respectively. The market anticipation over the end of the trade war resulted in a strong boost for the Chinese equity markets, with most of the major Chinese equity indices recording double-digit gains over the month. The Eurekahedge Greater China Hedge Fund Index gained 7.04 per cent in February, bringing its year-to-date return to 11.94 per cent over the first two months of 2019.
Roughly 65.6 per cent of the underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in February. Fund managers utilising equity long-biased strategies topped the table with their 8.03 per cent gain over the first two months of the year, while on the other end of the spectrum long volatility strategic mandate was down 6.47 per cent year-to-date as market volatilities remained suppressed throughout January and February.
North American fund managers gained 5.01 per cent as of February year-to-date, recovering from the losses they suffered over the last quarter of 2018. The cautious tone of the Fed and anticipation over the US-China trade talk outcome as they entered the final phase of the negotiations helped equity markets gain during the month.
The Eurekahedge European Hedge Fund Index gained 0.26 per cent in February, as the risk-on sentiment among investors was dampened by signs of weakening growth. Asia ex-Japan mandate continued to rebound in February, as the US-China trade talk supported a strong rally in the Chinese equity markets.
The Eurekahedge Asia ex Japan Hedge Fund Index was up 2.77 per cent during the month.
