The Eurekahedge Hedge Fund Index registered its strongest outperformance relative to underlying markets since February 2009, outperforming the MSCI AC World Index by 6.11 per cent in February. Long volatility and tail risk hedge funds led the performance tables in February and have outshined most other strategies as market volatility level remained elevated during the month.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. Going into 2020, net investor outflows of USD1.7 billion and a performance-based decline of USD30.4 billion have been recorded as of February 2020 year-to-date.
The Eurekahedge North American Hedge Fund Long Short Equities Hedge Fund Index declined 3.71 per cent in February, weighed by the US equity market sell-offs toward the end of the month. Underlying constituents for the index have outperformed the S&P 500 Index by 4.18 per cent as of February 2020 year-to-date.
The Eurekahedge Greater China Long Short Equities Hedge Fund Index was up 1.70 per cent in February, outperforming the Hang Seng Index by 2.39 per cent and the CSI 300 Index by 3.29 per cent. Optimism over the improving COVID-19 situation in Mainland China and the accommodative policies of the PBOC have provided some support for the region’s equity market. On a year-to-date basis, the USD30.3 billion Greater China mandate was up 1.03 per cent.
The Eurekahedge Fixed Income Hedge Fund Index was down 0.77 per cent in February, in spite of the risk-off sentiment in the market, which boosted global government bonds throughout the month. The Fed and the ECB have signalled potential policy supports to counter the economic slowdown caused by the COVID-19 outbreak, resulting in lower bond yields during the month.
