Hedge funds up 8.58 per cent in 2019, recording their strongest year since 2013

Hedge fund managers were up 1.52 per cent in December, pushing their year-to-date return to 8.58 per cent. 

The official announcement of the completion of the US-China phase-one deal provided support to risk assets, pushing the global equity market higher during the month. The MSCI ACWI (Local) was up 23.44 per cent in 2019.

On an asset-weighted basis, hedge funds were up 1.53 per cent in December, as captured by the Mizuho Eurekahedge Hedge Fund Index (USD). The index was up 6.90 per cent throughout the year.

The Eurekahedge North American Hedge Fund Index edged 1.65 per cent higher during the month, as the positive risk sentiment among investors driven by improving geopolitical situations boosted US equity markets.

The Eurekahedge Greater China Hedge Fund Index was up 5.40 per cent in December, and 17.57 per cent year-to-date. Positive trade developments, combined with strong macroeconomic data acted as tailwinds for the equity market in the region.

Hedge fund managers utilising fixed income strategies were up 1.02 per cent in December despite weakness in the global government bond market throughout the month. The improved risk sentiment combined with the wait-and-see stance of the ECB and the Fed resulted in higher yields over the year. The Eurekahedge Fixed Income Index ended 2019 up 7.75 per cent.

Fund managers utilising AI/machine learning strategies returned 0.55 per cent in December. On a year-to-date basis, the Eurekahedge AI Hedge Fund Index was up 5.63 per cent.

The Eurekahedge Crypto-Currency Hedge Fund Index was down 6.07 per cent in December, outperforming Bitcoin which ended the month down 6.18 per cent. Fund managers focusing on crypto-currencies returned 16.33 per cent in 2019.