Eurekahedge: Hedge Fund Index Gains 2.29% In Q1/2017

Apr 11 2017 | 10:12pm ET

Hedge funds largely weathered a number of headwinds in March, including a Fed interest rate hike, Trump's stumble with U.S. healthcare and the official start of the Brexit process, according to early data from Eurekahedge.

The Eurekahedge Hedge Fund Index rose 0.34% in March and 2.29% in the first quarter of the year, the company said. Nonetheless, the measure underperformed - underlying markets as represented by the MSCI AC World Index (Local) gained 0.79% during the month, with first quarter gains of 5.06%. 

Among regional mandates, Asia ex-Japan mandated hedge funds posted the best gains for the month, up 1.57% followed by European managers who were up 0.73% over the same period. Among strategic mandates, long/short equities hedge funds gained 1.07% followed by event driven hedge funds with 0.54% over the same period. Distressed debt hedge funds posted the steepest decline, down 1.21% for the month. 

Among developed market mandates, European hedge funds were up 0.73%, followed by North American peers with 0.48%. On the other hand, Japanese counterparts retracted 0.74% for the month. On a year-to-date basis, European managers reported 2.12% gains followed by North American and Japanese managers who posted returns of 2.10% and 1.15% respectively.

Meanwhile, among strategy mandates, long/short equities hedge funds gained 1.07% followed by event driven hedge funds with 0.54% over the same period. Distressed debt hedge fund managers posted the steepest decline this month, down 1.21%, followed by CTA/managed futures and macro mandated hedge funds, which fell 0.77% and 0.18%, respectively, over the same period.

Other key highlights from the March 2017 Flash Update:

  • Emerging market mandates were up a modest 0.60% for the month with strength led by underlying Asia ex-Japan mandates. Frontier markets, as represented by the Eurekahedge Frontier Markets Hedge Fund Index is up 1.50% for the month. 
  • The Eurekahedge Long Short Equities Hedge Fund Index’s 1.07% gain was led by underlying equity long-bias hedge funds, which gained 1.51% over the month. Long/short equities managers outshone other strategic mandates to post the best Q1 2017 returns, with gains of 3.87%.
  • Asia ex-Japan mandated hedge funds outshone regional peers, gaining 1.57% during the month. Underlying Greater China and India hedge fund managers up 1.82% and 4.36% over the same period respectively. On a year-to-date basis, Greater China and India-mandated hedge funds posted impressive gains, up 6.87% and 11.27% respectively.
  • Among volatility-focused hedge funds, short volatility hedge funds topped the table for March, gaining 1.43% while long-volatility hedge funds posted the steepest decline, down 2.02%. On a year-to-date basis, short volatility hedge funds gained 3.38% while tail risk hedge funds were down 4.74%.

Eurekahedge’s data was based on 40.88% of funds that have reported March 2017 returns as of April 11, 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.

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