Hedge funds up 0.31 per cent in October, says Eurekahedge

The Eurekahedge Hedge Fund Index was up 0.31 per cent in October, bringing its year-to-date return to 6.27 per cent. Roughly 30.1 per cent of the hedge fund managers comprising the index have recorded double-digit gains over the first 10 months of the year.

The global hedge fund industry AUM has declined by USD19.5 billion as of October 2019 year-to-date. Net outflows figure for Q3 stood at USD40.6 billion, which compares to the USD46.4 billion and USD40.0 billion of net outflows in Q1 and Q2 2019 respectively.

The Eurekahedge North American Hedge Fund Index was up 6.26 per cent year-to-date, as fund managers focusing on the region benefited from the equity market rally throughout the first 10 months of the year. The S&P 500 has gained 21.17 per cent as of October 2019 year-to-date, while the tech-heavy NASDAQ Composite was up 24.97 per cent over the same period. North American hedge fund managers have recorded USD76.5 billion of performance growth year-to-date.

The Eurekahedge Greater China Hedge Fund Index rallied 3.70 per cent in October on the back of the progress in US-China trade negotiations, pushing its year-to-date return to 11.82 per cent. The USD29.1 billion mandate has seen USD1.5 billion of performance growth, offset by USD0.4 billion of investor redemptions year-to-date.

The Eurekahedge CTA/Managed Futures Hedge Fund Index was down 1.11 per cent in October, as weak macroeconomic data in China raised concerns regarding global oil demand. Preliminary data showed that CTA/managed futures fund managers have generated USD13.9 billion of performance growth year-to-date, offset by investor redemptions totalling USD11.1 billion. This contrasts with how the mandate saw its AUM base decline by USD45.5 billion throughout 2018.

Hedge fund managers utilising fixed income strategies ended the month of October up 0.44 per cent despite the rally in bond yields throughout the month. On a year-to-date basis, the Eurekahedge Fixed Income Hedge Fund Index has returned 6.43 per cent.

The Eurekahedge ILS Advisers Index gained 1.17 per cent in October, pushing its year-to-date return to 1.97 per cent. Despite being a calm period of insurance losses, the first half of 2019 had seen ILS hedge fund managers crippled by loss creep from past events.

The Eurekahedge Crypto-Currency Hedge Fund Index was up 8.84 per cent in October as Bitcoin price rallied 14.09 per cent during the month. On a year-to-date basis, crypto hedge fund managers have returned 37.62 per cent over the first 10 months of 2019.