Thursday, 24 July 2014
Last updated 11 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…