Hedge funds up 1.06 per cent in April, says EurekaHedge

The Eurekahedge Hedge Fund Index gained 1.06 per cent in April, after recording one of its strongest Q1 returns post-crisis, according to the May 2019 Eurekahedge Report. On a year-to-date basis, the index was up 5.15 per cent, and roughly 21.8 per cent of the hedge fund managers comprising it have recorded double-digit gains over the first four months of the year.

The global hedge fund industry AUM has grown by USD27.0 billion as of April 2019 year-to-date. Final Q1 2019 net outflows figure stood at USD46.4 billion, just under half of the investor redemptions totalling USD94.7 billion seen in the final quarter of 2018.

The Eurekahedge Asia ex Japan Hedge Fund Index was up 7.87 per cent year-to-date, supported by the recovering Asian equity markets throughout the first four months of 2019. The Asia ex-Japan mandate has witnessed USD2.4 billion of investor redemptions year-to-date, despite robust performance gains totalling USD7.6 billion over the same period.

North American hedge fund managers were up 1.36 per cent in April, with the underlying long/short equities mandate up 2.07 per cent during the month. Positive earnings surprises and ongoing dovish stance from the Fed helped renew investors' optimism in the region's equity market. On a year-to-date basis, the Eurekahedge North American Hedge Fund Index was up 6.73 per cent.

The Eurekahedge CTA/Managed Futures Hedge Fund Index gained 0.81 per cent in April, with mixed returns among its constituents. Rising oil prices during the month was a major performance contributor, while slumping metal prices generated losses for some managers. The strategic mandate has seen investor redemptions totalling USD10.4 billion year-to-date.

The Eurekahedge ILS Advisers Index slumped 0.50 per cent in April, bringing its year-to-date performance into the red as losses from last year's Atlantic hurricane season continued to weigh on cat bond performance. ILS hedge fund managers suffered considerable losses from the recent hurricane seasons in 2018 and 2017, during which the index was down 3.92 per cent and 5.60 per cent respectively. However, investor interest level has remained robust through the recent years, with an estimated USD18.9 billion of net allocations made into the ILS hedge fund space since the beginning of 2017.

The Eurekahedge Crypto-Currency Hedge Fund Index gained 3.71 per cent in April, bringing their year-to-date return up to 18.10 per cent. Crypto hedge fund managers trailed behind Bitcoin, which rallied 26.22 per cent in April and 33.27 per cent throughout the first four months of 2019.

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