The Eurekahedge Hedge Fund Index was down 0.30 per cent in September, bringing its year-to-date return to 5.70 per cent. Roughly 28.3 per cent of hedge fund managers comprising the index have recorded double-digit gains over the first three quarters of 2019.
The global hedge fund industry AUM has declined by USD22.4 billion as of September 2019 year-to-date. Net outflows figure for Q3 stood at USD34.3 billion, as investor redemptions continued to slow down. Hedge fund managers recorded USD46.4 billion and USD40.0 billion of net outflows in the first and second quarters of 2019 respectively.
The Eurekahedge North American Hedge Fund Index was up 6.21 per cent year-to-date, as fund managers focusing on the region benefited from the equity market rally throughout the first three quarters of the year. The S&P 500 has gained 18.74 per cent as of September 2019 year-to-date, while the tech-heavy NASDAQ Composite was up 20.12 per cent over the same period. North American hedge fund managers have recorded USD69.3 billion of performance growth year-to-date.
The Eurekahedge Greater China Hedge Fund Index lost 0.41 per cent in September, dragging its year-to-date gain to 8.26 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 2.07 per cent in September, as managers struggled to profit from the volatile oil market following the Saudi attack. Preliminary data showed that CTA/managed futures fund managers have generated USD18.4 billion of performance growth year-to-date, offset by investor redemptions totalling USD10.2 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 September up 0.14 per cent as easing policies adopted by major central banks continued to provide support for the global bond market. The Fed’s rate cut and the ECB’s stimulus package pushed yields lower throughout the month. On a year-to-date basis, the Eurekahedge Fixed Income Hedge Fund Index has returned 5.47 per cent.
Hedge fund managers headquartered in Hong Kong have witnessed investor redemptions totalling USD0.3 billion year-to-date despite strong performance-driven gains of USD7.2 billion over the same period. The special administrative region’s stability as a financial centre came under scrutiny as the ongoing protests and social unrest continue to unnerve the markets for fear of capital outflows.
The Eurekahedge ILS Advisers Index gained 1.46 per cent in September, bringing its year-to-date gain to 0.83 per cent. Despite being a calm period of insurance losses, the first half of 2019 has seen ILS hedge fund managers crippled by loss creep from past events.
The Eurekahedge Crypto-Currency Hedge Fund Index was down 10.64 per cent in September, outperforming Bitcoin which ended the month down 15.69 per cent. On a year-to-date basis, crypto hedge fund managers have returned 29.39 per cent over the first nine months of 2019.