Friday, 5 February 2016
Last updated 21 hours ago
Dec 20 2011 | 7:33am ET
Hedge funds recorded marginal losses in November—the Eurekahedge Hedge Fund Index was down 0.87% for the month—as investors withdrew $9.4 billion and performance-based losses cost the industry another $0.5 billion.
Hedge funds were able to provide “significant” downturn protection, however, during a volatile month that saw the MSCI World Index tumble almost 10% before closing down 3.22%. Year-to-date, the Eurekahedge Hedge Fund Index is down 3.78%, amid continuing market uncertainty.
Risk aversion remained high in November, with Eurozone fears dominating investor sentiment. European hedge funds witnessed their seventh straight month of net outflows, losing $3.5 billion in November, for a total of $30 billion YTD.
North American funds saw their third straight month of negative asset flows, losing $3.3 billion. After gaining $146.9 billion between January 2010 and August 2011, North American hedge funds have lost $20 billion since September 2011. Despite the negative November index, however, North American funds saw their net assets increase thanks to performance-based gains. North American funds generated growth of 1.3% in November.
Strategy-wise, CTA/managed futures funds were the best performers, gaining 0.15% in November. Macro investing hedge funds posted slightly negative returns for November, down 0.25%, distressed debt funds were down 1.45% and long/short equities lost 1.69%. Arbitrage and relative value funds were flat, losing 0.06% while fixed income funds shed 0.68%. Multi-strategy funds were down 0.52%.
The Mizuho-Eurekahedge Top 100 Index remained in the black November YTD, up 2.12%, while the Mizuho-Eurekahedge Multi-Strategy Index was up 5.22%.
For the year, 60% of hedge funds remained in negative territory.