Hedge funds benefitted from strong performance in U.S. equities in February and encouraging economic data in the region, according to a flash reading of Eurekahedge’s Hedge Fund Index.
The index gained 0.99% during the period, bringing the year-to-date gains in Eurekahedge’s index to 1.93%. In comparison, underlying markets as represented by the MSCI AC World Index (Local) and the S&P 500 gained 2.72% and 3.78%, respectively.
Among regional mandates, Latin American hedge funds managers gained 2.76% while among strategic mandates, distressed debt hedge funds topped the table and was up 1.34% followed by event-driven hedge funds, which gained 1.19% during the month.
11% of managers posting returns greater than 5% over the same period, Eurekahedge noted in a statement.
Other key highlights from the February 2017 flash update:
- Among developed mandates, North American hedge funds were up 0.77%, followed by European and Japanese counterparts which gained 0.46% and 0.30% for the month respectively. On a year-to-date basis, North American managers were up 1.78% followed by Japanese and European managers who posted gains of 1.57% and 1.09% respectively.
- Emerging market mandates were up 1.79% for the month with strength led by underlying Latin America and Asia ex-Japan mandates. Frontier markets as represented by the Eurekahedge Frontier Markets Hedge Fund Index was up 1.00% for the month.
- The Eurekahedge Long Short Equities Hedge Fund Index gained 1.16% during the month with strength led by underlying equity long-bias hedge funds which gained 2.11% over the same period.
- Asia ex-Japan mandated hedge funds gained 1.42% during the month with underlying Greater China and India hedge fund managers up 2.77% and 2.86% over the same period respectively. On a year-to-date basis, Greater China and India mandated hedge funds posted impressive gains, up 5.52% and 6.64.
- Among volatility-focused hedge funds, short volatility hedge funds topped the table for February, gaining 0.57% while long-volatility hedge funds posted the steepest decline, down 0.88%. As of 2017 year-to-date, short volatility hedge funds gained 2.04% while tail risk hedge funds were down 2.96%.
- Multi-strategy and CTA/managed futures hedge fund managers posted gains of 1.06% each with exposure into underlying equities and equity indices among contributors to performance. Trend-following hedge fund managers posted an impressive gain of 2.56%, followed by commodity and FX focused managers with gains of 0.72% and 0.18% respectively.
- Fixed income mandated hedge funds posted gains of 0.88% during the month, with gains realized from long exposure into Germany and UK fixed income instruments.
- Macro and arbitrage hedge fund managers posted modest gains during the month, gaining 0.48% and 0.39% respectively. Relative value mandated hedge funds were up 0.37% with support by underlying short volatility hedge fund managers.
- On a year-to-date basis, event driven and distressed debt hedge fund managers were up 3.27% and 2.88%, respectively, followed by long/short equities at 2.84% and and multi-strategy hedge fund managers at 2.30%.
Eurekahedge’s data was based on 56.99% of funds that have reported February 2017 returns as of March 14, 2017. The company tracks asset flows, hedge fund performance and regional key trends across the hedge fund universe, tracking more than 130 data points on more than 24,000 alternative funds in its database.