The Eurekahedge Hedge Fund Index returned 8.74 per cent in 2019, supported by the risk-on sentiment among investors and positive geopolitical developments throughout the year. Roughly 44.6 per cent of the hedge fund managers comprising the index have recorded double-digit gains over the year
The global hedge fund industry AUM has increased by USD9.9 billion in 2019. Investor redemptions totalling USD126.2 billion have been recorded throughout the year, a level the industry has not seen post-crisis.
The Eurekahedge North American Hedge Fund Index was up 9.32 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 during the year, while the tech-heavy NASDAQ Composite was up 35.23 per cent over the same period. North American hedge fund managers have recorded USD94.8 billion of performance growth year-to-date.
The Eurekahedge Greater China Hedge Fund Index ended 2019 up 16.83 per cent on the back of the region’s underlying equity market rally. The USD29.4 billion mandate has seen USD2.0 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 11.25 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 has seen USD70.1 billion of performance growth year-to-date, counterbalanced by USD71.8 billion of investor outflows.
The Eurekahedge Fixed Income Hedge Fund Index has returned 7.73 per cent throughout 2019, supported by major central bank policies which pushed yields lower throughout the year. The US 10-year treasury yield briefly dipped below the 1.50 per cent mark in early September, which was the lowest level it has reached since Q3 2016.
The Eurekahedge ILS Advisers Index ended 2019 up 1.43 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. Despite being a comparatively calm period of insurance losses, the year 2019 has seen some ILS fund managers comprising the USD89.3 billion industry crippled by loss creep from past events.
The recently launched Eurekahedge Structured Credit Hedge Fund Index tracks the performance of 76 active structured credit hedge funds collectively managing USD60.6 billion. The index has returned 8.12 per cent throughout 2019, and recorded an exceptional Sharpe ratio of 2.98 over the 3-year period ending December 2019.