We are pleased to announce the nominees for the Eurekahedge Asian Hedge Fund Awards 2016 which will be taking place at Capella Singapore on 27 May 2016. To acknowledge performers that have yet to be recognised for their efforts, Best ASEAN Fund was added for 2016 – bringing the total to 18 awards this year. Previous additions include Most Consistent Asian-based Fund, Best Asian Billion Dollar Hedge Fund, and Best Female Hedge Fund Manager.View the press release for the nominee list here.
Hedge funds recovered part of their losses from earlier in the year and were up 1.15%1 in March as underlying markets represented by the MSCI World Index2 gained 5.47% in what shaped up to be a positive month for global markets. The Fed’s decision to roll back further on its scheduled interest rate hikes for 2016, coupled with rising oil prices and monetary easing in China provided much need relief for the markets. As of end-Q1 2016, hedge funds are down 0.52%, ahead of underlying markets as the MSCI World Index posted losses of 1.97%.
Emerging markets mandated managers had a good month as the stabilisation in oil prices and well-performing equity markets in EM countries lent support to managers during the month. Central bank meetings also dominated the news in March, influencing reversals in the markets. Market reversals did not bode well for some CTA/managed futures and macro managers with returns languishing into negative territory during the month as comments made by central bankers led to choppy trading conditions. Policy shots remain a key theme for central bankers as they attempt to jolt the global economy amid a deflationary environment.
Below are the key highlights for the month:
- Hedge funds were up 1.15% during the month, down 0.52% year-to-date. In March, emerging market and North American mandates contributed to strong gains for managers – up 4.79% and 1.96% respectively.
- Event driven, short-volatility and arbitrage strategies topped the table in March, returning 3.34%, 2.98% and 2.28% respectively; preliminary numbers show.
- Among developed market mandates, North American managers ended Q1 down 0.15% while European and Japanese managers posted losses of 2.56% and 2.39% respectively.
- Long/short equities, CTA/managed futures and multi-strategy hedge fund strategies account for 65% of investor searches across the Eurekahedge Global Hedge Fund Database, generating the most investor interest over the last 12 months ending March 2016. The strategies are in the lead among hedge fund strategies, recording almost US$100 billion in investor flows over this period.
- The Eurekahedge Asia ex-Japan Hedge Funds Index was up 4.21% during the month, with Greater China hedge funds, a heavyweight of the index, posting gains of 4.69% in March.
- Improving risk appetite supported the high yield markets, with distressed debt hedge funds reversing their 4-month losing streak to bounce back with gains of 1.94% during the month. As of March 2016, distressed debt strategies are down 1.01% while losses in 2015 stood at 4.40%.
|Main Indices||Mar 20162||Last 3 Months||2016 Returns||2015 Returns||Annualised Returns||Constituents||Weighting|
|Eurekahedge Hedge Fund Index||1.15||-0.52||-0.52||1.47||8.92%||2,739||Equal|
|Eurekahedge North American Hedge Fund Index||1.96||-0.15||-0.15||-0.53||9.44%||649||Equal|
|Eurekahedge Event Driven Hedge Fund Index||3.34||0.04||0.04||-1.63||9.24%||125||Equal|
|Index of the Month||Mar 20162||Last 3 Months||2016 Returns||2015 Returns||Annualised Returns||Constituents||Weighting|
|CBOE Eurekahedge Relative Value Volatility Hedge Fund Index||2.28||2.64||2.64||4.47||9.88%||40||Equal|
|Eurekahedge Main Indices||Mar 20162||2016 Returns||2015 Returns|
|Eurekahedge Hedge Fund Index||1.15||-0.52||1.47|
|Eurekahedge Fund of Funds Index||0.45||-3.18||0.37|
|Eurekahedge Long-only Absolute Return Fund Index||6.05||-0.37||-2.14|
|Eurekahedge Islamic Fund Index||2.21||-1.00||-1.83|
All regional mandates were up during the month of March, with both Eastern Europe & Russia and Latin American managers topping the table – up 7.87% and 5.47% respectively. The stabilisation of oil prices and a dovish tone from the Fed during the month have propped up performance of managers utilising these mandates. Latin American equity markets had a good month with the Brazilian IBOVESPA up 16.97% during the month, largely on the back of oil price stabilisation as well as the prospects of a regime change in Brazil. The Eurekahedge Emerging Markets Hedge Fund Index also posted good returns during the month, up 4.79% as similar themes also supported managers with a broader emerging market mandate. Eastern Europe & Russian hedge fund managers also lead the table on a year-to-date basis, with gains of 8.17%, followed by Latin American hedge fund managers with gains of 6.77% over the same period.
Asia ex-Japan mandates increased by 4.21% during the month while Japanese hedge funds saw returns of 2.66% over the same period. Greater China managers also posted gains in March and were up 4.69% as fresh stimulus came out of China at the beginning of the month, injecting more liquidity into the Chinese economy. As a consequence, equity long-bias strategies investing with a Greater China mandate posted strong gains as underlying markets rallied sharply.
On a year-to-date basis, Asia ex-Japan hedge fund managers are down 2.39% with their Greater China counterparts posting losses of 4.85% over the same period. Japanese managers were also down 2.64% on a year-to-date basis. In developed markets, North American managers were up 1.96% during the month while European managers were up a modest 0.65% over the same period. On a year-to-date basis, North American hedge funds were down 0.15% while European hedge funds were down 2.56%.
|Eurekahedge Regional Indices||Mar 20162||2016 Returns||2015 Returns|
|Eurekahedge North American Hedge Fund Index||1.96||-0.15||-0.53|
|Eurekahedge European Hedge Fund Index||0.65||-2.56||4.68|
|Eurekahedge Eastern Europe & Russia Hedge Fund Index||7.87||8.17||1.87|
|Eurekahedge Japan Hedge Fund Index||2.66||-2.64||6.62|
|Eurekahedge Emerging Markets Hedge Fund Index||4.79||1.39||3.25|
|Eurekahedge Asia ex Japan Hedge Fund Index||4.21||-2.39||7.51|
|Eurekahedge Latin American Hedge Fund Index||5.47||6.77||0.92|
Performance across strategic mandates was a mixed bag, with CTA/managed futures and macro fund managers languishing into negative territory down 1.58% and 0.19% respectively as outcomes from central bank meetings have lead to rather dramatic market reversals. The rate cuts and generous stimulus measures delivered by the ECB led to a temporary surge in the European equity markets before markets reversed following comments made by Draghi post-March 10th easing, causing choppy trading conditions for both CTA/managed futures and macro managers. Losses were made across currencies as comments from central bankers lead to reversals within FX while long bond exposure also led to losses as investor demand for safe haven assets waned in March.
With overall market volatility subsiding as evidenced by the CBOE VIX slipping down to 13.95 by end March, short-volatility hedge fund strategies pocketed strong gains, up 2.98% in March and erased most of their losses from earlier in the year. Improving risk appetite also supported the high yield markets, with distressed debt hedge funds reversing their 4-month losing streak to bounce back in March with gains of 1.94%. A possible production cut agreement between major oil producers could provide further support to oil prices and in turn high yield markets, but with Iran sitting out of the talks the global oil glut might still continue for the near term.
On the other hand, event driven managers with exposure into Asia reported gains and were up 3.34% during the month with deal activity within the agriculture, communications and technology space among performance contributors. Long/short equities managers were up for the first time this year posting an increase of 2.29%. Global equity markets were in positive territory across the board, with Latin American and Russian equity markets having a good month; some managers with exposure into Brazil, Mexico and Russia reaped good gains as oil price stabilisation lent some support to the emerging market space. Asia ex-Japan mandated long short equities hedge funds managers also saw positive returns, helped by China?? monetary easing at the beginning of March.
|Eurekahedge Strategy Indices||Mar 20162||2016 Returns||2015 Returns|
|Eurekahedge Arbitrage Hedge Fund Index||2.28||1.42||4.94|
|Eurekahedge CTA/Managed Futures Hedge Fund Index||-1.58||1.73||-1.04|
|Eurekahedge Distressed Debt Hedge Fund Index||1.94||-1.01||-4.40|
|Eurekahedge Event Driven Hedge Fund Index||3.34||0.04||-1.63|
|Eurekahedge Fixed Income Hedge Fund Index||1.56||0.13||0.91|
|Eurekahedge Long Short Equities Hedge Fund Index||2.29||-2.15||3.02|
|Eurekahedge Macro Hedge Fund Index||-0.19||-0.33||1.39|
|Eurekahedge Multi-Strategy Hedge Fund Index||1.82||0.42||2.09|
|Eurekahedge Relative Value Hedge Fund Index||2.24||-0.29||0.78|
|CBOE Eurekahedge Long Volatility Hedge Fund Index||-3.00||-1.09||-1.07|
|CBOE Eurekahedge Relative Value Volatility Hedge Fund Index||2.28||2.64||4.47|
|CBOE Eurekahedge Short Volatility Hedge Fund Index||2.98||-0.06||1.09|
|CBOE Eurekahedge Tail Risk Hedge Fund Index||-2.87||-0.71||-9.51|
|Eurekahedge Global Hedge Fund Indices by Fund Size||Mar 20162||2016 Returns||2015 Returns|
|Eurekahedge Small Hedge Fund Index (< US$100m)||1.41||-0.12||1.06|
|Eurekahedge Medium Hedge Fund Index (US$100m – US$500m)||0.75||-1.12||2.74|
|Eurekahedge Large Hedge Fund Index (> US$500m)||0.09||-1.43||2.27|
|Eurekahedge Billion Dollar Hedge Fund Index||-0.19||-1.48||1.81|
|Mizuho-Eurekahedge Indices||Mar 20161||2016 Returns||2015 Returns|
|Mizuho-Eurekahedge Index – USD||1.28||-0.20||-0.69|
|Mizuho-Eurekahedge TOP 100 Index – USD||0.08||-0.73||0.85|
|Mizuho-Eurekahedge TOP 300 Index – USD||0.74||-0.54||0.00|
|Asia-Eurekahedge Indices||Mar 20161||2016 Returns||2015 Returns|
|Eurekahedge Greater China Hedge Fund Index||4.69||-4.25||8.98|
|Eurekahedge India Hedge Fund Index||6.03||-1.79||5.15|