The Eurekahedge Hedge Fund Index returned 8.67 per cent in 2019, supported by the risk-on sentiment among investors and positive geopolitical developments throughout the year. Roughly 37.6 per cent of the hedge fund managers comprising the index have recorded double-digit gains over the year.
The global hedge fund industry AUM had increased by USD10.3 billion in 2019. Investor redemptions totalling USD127.5 billion have been recorded throughout the year, a level the industry has not seen after the global financial crisis.
The Eurekahedge North American Hedge Fund Index was up 9.06 per cent throughout 2019, as fund managers focusing on the region benefited from the equity market rally throughout the year. The S&P 500 has gained 28.88 per cent over the year, while the tech-heavy NASDAQ Composite was up 35.23 per cent over the same period. North American hedge fund managers had recorded USD94.9 billion of performance growth in 2019.
The Eurekahedge Greater China Hedge Fund Index ended 2019 up 16.04 per cent on the back of the region’s underlying equity market rally. The USD30.3 billion mandate has seen USD2.7 billion of performance growth, offset by USD0.3 billion of investor redemptions over the year.
The Eurekahedge Long Short Equities Hedge Fund Index was up 11.24 per cent in 2019, as they benefited from the robust equity market rally throughout the year, which resulted in double-digit gains for the MSCI ACWI (Local). The strategic mandate had a slow start in 2020, as equity fund managers slumped 0.35 per cent in January on the back of weak global equity market performance.
The Eurekahedge Fixed Income Hedge Fund Index returned 7.94 per cent throughout 2019, supported by major central bank policies which pushed yields lower throughout the year. Fixed income fund managers gained 0.82 per cent in January as investors sought safe haven assets following the COVID-19 outbreak.
The Eurekahedge ILS Advisers Index which represents fund managers primarily exposed to non-life risks ended 2019 up 0.92 per cent, in contrast to how the index was down 3.92 per cent and 5.60 per cent in 2018 and 2017 respectively as ILS fund managers bore the brunt of the catastrophic Atlantic hurricane seasons during those years. In contrast, ILS fund managers with significant life risk exposure ended the year up 7.65 per cent.
The recently launched Eurekahedge Crypto-Currency Hedge Fund Index was up 22.29 per cent in January, supported by the strong performance of Bitcoin which ended the month up 31.63 per cent. Fund managers focusing on crypto-currencies gained 16.41 per cent throughout 2019.
