Eurekahedge: Hedge Funds Slip 0.37% in First Quarter

Apr 19 2016 | 9:45pm ET

Hedge funds recovered part of their losses from earlier in the year, with the Eurekahedge Hedge Fund Index adding 1.33% in March to end the first quarter down 0.37%, according to Eurekahedge’s April Report. 

Key highlights include:

  • Hedge funds were down 0.37% as of Q1 2016, with total AUM declining by $6.4 billion - the first Q1 decline in hedge fund assets on record since 2009.
  • Event driven hedge funds posted the best returns among all strategic mandates during the month, up 3.16%. On the other hand, CTA/managed futures managers posted the steepest decline during the month, down 1.61%.
  • Distressed debt hedge funds were up for the first time after a four-month losing streak, posting returns of 3.03% during the month. Total AUM for the strategy has declined by almost $8.0 billion over the last 12 months. 
  • Latin American hedge funds were up for the second consecutive month, leading the table with gains of 4.85% during the month. On a year-to-date basis, Latin American hedge fund managers also topped the tables gaining 6.15% - the only regional mandate to post positive year-to-date returns as of March 2016. 
  • European managers posted their third consecutive month of performance-based decline, totaling $7.8 billion on a year-to-date basis. On the other hand, European managers also recorded the highest investor allocations across all regional mandates - US$8.1 billion on a year-to-date basis. 
  • Asia ex-Japan managers were up for the first time this year, gaining 4.78% during the month. Performance-based gains of $1.2 billion were recorded while investors allocated US$ 1.5 billion into the mandate during the month. 
  • The global hedge funds industry grew by $108.7 billion in 2015 with investor inflows accounting for three-quarters of the gain in assets. 

Eurkahedge’s update was based 55.61% of funds that have reported March 2016 returns as of 14 April 2016. 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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