Hedge funds rebounded strongly in August, with the Eurekahedge Hedge Fund Index up 1.36%, while the MSCI World Index gained 2.48%. On a year-to-date basis, hedge funds are up 4.22%, falling slightly behind underlying markets, as the MSCI World Index returned 5.96% over the same period.
Key findings include:
- Preliminary figures show that managers posted performance-based gains of US$5.5 billion during the month.
- Emerging markets and North America investing managers delivered the best year-to-date returns of 5.61% and 5.44%, respectively.
- Hedge funds saw their largest net asset outflows for the year in July — with investors redeeming US$4.72 billion in mid-year withdrawals.
- India-focused hedge funds posted their seventh consecutive month of gains, up 1.92% in August and 28.17% year-to-date.
- Eastern Europe and Russia investing funds lost 1.35% during the month, and are down 5.96% year-to-date — the worst performer among all regional mandates.
- Fixed income hedge fund strategies were up 0.28% in August, posting their 12th consecutive month of gains. Year-to-date they have increased 4.49%.
- Japanese hedge funds posted their fourth consecutive month of gains, outperforming the benchmark Nikkei 225 index by over 7% year-to-date.