A&P Emerging Managers Index Down -0.29% in June; +5.07% In First Half

Jul 17 2017 | 8:42pm ET

Emerging hedge funds posted a mixed but steady month in June, according to new data from Advisors & Partners, ending five consecutive months of positive performance.

The A&P Emerging Manager Index dipped -0.29% in June, the company said in a statement, after losing some momentum in the latter part of the month against the backdrop of the third consecutive quarterly rate rise by the U.S. Federal Reserve, declining oil & bond prices, and equity market volatility near historic lows. 

It was the first negative performance since November 2016 for the measure, A&P said, adding that it closed the first half up +5.07%. In comparison, the S&P 500 returned 0.48% and the Eurekahedge Hedge Fund Index -0.03%, respectively, in June.

Advisors & Partners launched the A&P Emerging Manager Index on December 1, 2015. It is an equal weighted index of 20 emerging managers designed to offer investors with a particular interest in early stage hedge fund investing an effective research and benchmarking tool, and to provide better visibility to asset managers who have launched new hedge fund investment products.  

The index’s methodology combines both quantitative and qualitative screening and draws from eligible investment strategies including Arbitrage, Bottom-Up, Convertible Arbitrage, CTA/Managed Futures, Distressed Debt, Directional, Event Driven, Fixed Income, Long Bias, Long/Short Equity, Macro, Market Neutral, Merger Arbitrage, Multi-Strategy, Relative Value & Risk Arbitrage.

To be considered for the index, the index constituents must be a fund, open to investments and reporting up to date fund performance (net of fees) at least monthly. The fund and the appointed investment advisor must have assets under management of between $20 million and $500 million with a track record of less than 36 months. The appointed investment advisors of the index constituents must also be regulated by local regulators and operate from an FATF approved country. Performance, net of all fees, is calculated monthly and published monthly. 

Founded in 2011, London-based Advisors & Partners LLP is an independent, privately held company providing business, financial and investment management advisory services to institutional investors, asset managers, financial institutions and corporations globally. The company’s expertise spans investment opportunities sourcing, asset operators and managers selection, structuring capabilities, portfolio construction, capital raising and dedicated investment solutions in both financial and real assets.

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