Eurekahedge: Hedge Fund Index Up 0.92% in July As Equity Longs Pay Off

Aug 8 2017 | 9:16pm ET

Hedge funds extended their 2017 gains in July led by managers with an equity long bias, according to a flash update from Eurekahedge, although many still underperformed underlying benchmark indexes.

On a year-to-date basis, hedge funds are up 4.32% while underlying markets are up 9.41%, the company said in a statement.

Eurekahedge's widely followed Hedge Fund Index gained 0.92% during the month, compared with a 1.64% gain in the MSCI AC World Index (Local). All of Eurekahedge’s key regional mandates were in the green for the month, with emerging market mandates excluding Eastern Europe & Russia delivering the best returns. 

Key highlights for July 2017:

  • Among developed market mandates, Japanese hedge funds led on a year-to-date basis with gains of 5.63%, followed by European hedge funds up 4.25% and North American hedge funds up 3.39%.
  • Among strategic mandates, equity long bias hedge funds led on a year-to-date basis, gaining 9.81%, followed by event driven hedge funds posting a return of 6.65% and multi-strategy hedge funds with 6.39%.
  • Emerging market mandates continue to outshine their developed market peers, with India, Greater China and Asia ex-Japan hedge funds witnessing gains of 19.08%, 18.22% and 12.37% respectively. Latin America and Eastern Europe mandated funds were also up 11.06% and 4.03% for the year.
  • Performance across fund sizes has varied, with mid-sized hedge funds ($100 million to $500 million) gaining 4.55% year-to-date - outperforming their billion dollar peers by almost 185 basis points for the year.
  • The Eurekahedge AI/Machine Learning Hedge Fund Index is up 5.89% for the year, outperforming traditional quant hedge funds, which are down 0.36% for the year.
  • CTA/managed futures strategies dropped 1.95% for the year, with commodity focused hedge funds dipping 1.77% while FX focused strategies are up 1.99%.

Eurekahedge’s data was based on 33.76% of funds that have reported July 2017 returns as of August 8, 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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