Eurekahedge: Hedge Funds Gain 0.88% in November, Up 2.58% YTD

Dec 8 2015 | 7:09pm ET

Hedge funds continued their recovery into the final month of the fourth quarter, according to a flash update of the Eurekahedge Hedge Fund Index.

The measure rose 0.88% in November, compared to the MSCI World Index’s return of 0.38%. On a year-to-date basis, hedge funds are up 2.58%, while underlying markets as represented by the MSCI World have gained 1.78%, according to Eurekahedge.

In the update, Eurekahedge cited the thematic dominance of a potential U.S. rate hike in December, along with the ECB's dovish stance regarding further easing in the Eurozone. 

The latter was partially realized last week when the ECB decided to cut deposit rates even further, adding to their menu an ever expansive array of negative yielding bonds on offer from countries otherwise plagued with anemic growth. Eurekahedge also raised the question of how Europe will reconcile its easy credit policies with simultaneous calls for reforms & austerity. 

The update also highlighted a number of key takeaways from November’s results:

  • On a year-to-date basis, hedge funds are up 2.58%, which compares with a gain of 4.61% seen over the same period last year. Total AUM in hedge funds has grown by $100 billion in 2015, with three-quarters of this gain coming from investor flows.
  • Among developed market mandates, Japanese managers lead with year-to-date gains of 6.36%, followed by European managers up 4.95% while North American managers trail behind with gains of 0.90%. North American managers look on track to post their worst annual return since 2011.
  • Greater China investing hedge funds posted their third consecutive month of gains and were up 0.85% in November, outperforming the CSI 300 Index by almost 9% on a year-to-date basis.
  • Distressed debt funds have posted the worst return among all hedge fund strategic mandates on a year-to-date basis, down 3.92% and are on track to post their worst performance since 2008. Relative value volatility funds however, have delivered the best gains of 5.58% in 2015.
  • Asia ex-Japan mandated hedge funds are up 7.15% at 2015 year-to-date, the biggest gainer among all hedge fund regional investment mandates, outperforming the MSCI AC Asia ex Japan Index by over 14%.
  • CTA/managed futures strategies posted the best gains among all strategic mandates in November, up 2.53% - their strongest monthly gain since January 2015. The strategy has attracted almost US$30 billion in investor flows, the second highest following long/short equity strategies.

Eurkahedge’s flash update data was based on 29.46% of funds that have reported November 2015 returns as of December 8.

Eurekahedge tracks asset flows, hedge fund performance and regional key trends across the hedge fund universe. The firm's database tracks more than 130 data points on more than 24,000 alternative funds.

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