Hedge funds continued their recovery in Q4 with the Eurekahedge Hedge Fund Index up 0.88% in November, while the MSCI World Indexgrew by 0.38% during the month. On a year-to-date basis, hedge funds are up 2.58% while underlying markets as represented by the MSCI World have gained 1.78%.
Here are some key takeaways.
- On a year-to-date basis, hedge funds are up 2.58%, which compares with a gain of 4.61% seen over the same period last year. Total AUM in hedge funds has grown by US$100 billion in 2015, with three-quarters of this gain coming from investor flows.
- Among developed market mandates, Japanese managers lead with year-to-date gains of 6.36%, followed by European managers up 4.95% while North American managers trail behind with gains of 0.90%. North American managers look on track to post their worst annual return since 2011.
- Greater China investing hedge funds posted their third consecutive month of gains and were up 0.85% in November, outperforming the CSI 300 Index by almost 9% on a year-to-date basis.
- Distressed debt funds have posted the worst return among all hedge fund strategic mandates on a year-to-date basis, down 3.92% and are on track to post their worst performance since 2008. Relative value volatility funds however, have delivered the best gains of 5.58% in 2015.
- Asia ex-Japan mandated hedge funds are up 7.15% at 2015 year-to-date, the biggest gainer among all hedge fund regional investment mandates, outperforming the MSCI AC Asia ex Japan Index by over 14%.
- CTA/managed futures strategies posted the best gains among all strategic mandates in November, up 2.53% — their strongest monthly gain since January 2015. The strategy has attracted almost US$30 billion in investor flows — the second highest following long/short equity strategies.