Hedge funds up 1.83 per cent in June, says Eurekahedge

The Eurekahedge Hedge Fund Index was up 1.83 per cent in June, bringing its year-to-date return to 5.84 per cent, according to the July2019 edition of the Eurekahedge report.

Roughly 24.7 per cent of the hedge fund managers comprising the index have recorded double-digit gains over the first half of the year.

The global hedge fund industry AUM has grown by USD2.0 billion as of June 2019 year-to-date. Preliminary Q2 2019 net outflows figure stood at USD23.8 billion, as investor redemptions continued to slow down. Hedge fund managers recorded USD46.4 billion and USD94.7 billion of net outflows in Q1 2019 and Q4 2018 respectively.

The Eurekahedge North American Hedge Fund Index was up 7.04 per cent year-to-date, as fund managers focusing on the region benefited from the equity market rally throughout the first half of the year. The S&P 500 gained 17.35 per cent over the first half of 2019, while the tech-heavy NASDAQ Composite was up 20.66 per cent over the same period. North American hedge fund managers have recorded USD49.9 billion of performance growth year-to-date.

The Eurekahedge Greater China Hedge Fund Index gained 3.98 per cent in June, bringing its year-to-date gain to 9.87 per cent. Investor confidence in the USD28.5 billion mandate had remained robust with USD0.9 billion of net inflows recorded in 2018, in spite of the USD2.3 billion performance decline over the same year.

The Eurekahedge CTA/Managed Futures Hedge Fund Index was up 2.49 per cent in June, with mixed returns among its underlying regional mandates. The heightened tension between the US and Iran resulted in a sharp increase in oil prices during the month, which acted as a performance contributor for CTA/managed futures hedge funds along with long positions in metals. Preliminary data showed that the strategic mandate saw USD2.3 billion of net inflows in June, the strongest monthly investor allocation since January 2018.

Hedge fund managers utilising fixed income strategies ended the month of June up 1.12 per cent on the back of strong government and corporate bond markets. Growing expectations over imminent rate cuts from major central banks drove bond yields down over the month. Most notably, the US 10-year bond yield dipped to its lowest level since 2016. On a year-to-date basis, the Eurekahedge Fixed Income Hedge Fund Index has returned 5.09 per cent.

The Eurekahedge ILS Advisers Index was up 0.09 per cent in June, bringing its year-to-date loss to 1.30 per cent. Despite being a calm period of insurance losses, the first half of 2019 has seen ILS hedge fund managers crippled by loss creep from past events.

The Eurekahedge Crypto-Currency Hedge Fund Index rallied 18.88 per cent in June, recording its fifth consecutive positive month of the year. Crypto hedge fund managers benefited from the rally in crypto assets which saw Bitcoin breaching the USD12,000 level for the first time since the Q1 2018 crash. The index was up 109.46 per cent over the first half of 2019.

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