US Hedge Fund Fees Moving Up

Strategy Highlight CTA/Managed Futures (-2.12% YTD) -US$31.57 billion AUM YTD

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Q2 hedge fund letters, conference, scoops etc

Long Short Equities Strategy

CTA/managed futures fund managers continued to struggle under the pressure of the weakening energy and metals sector. The Eurekahedge CTA/Managed Futures Hedge Fund Index is down 2.12% year-to-date. Oil supply disruption and the trade friction between the US and China remained as the major themes in July.

Region Highlight Asia (-1.68% YTD) +US$2.88 billion AUM YTD

Long Short Equities Strategy

Asian hedge funds were down 1.68% as of July 2018 year-to-date, as they struggle under the pressure of global trade and political concerns. Fund managers focusing in China, Korea, and India posted losses of 2.37%, 3.54%, and 3.90% respectively over the first seven months of the year.

Management Fees by Launch Year

North American hedge funds which launched in 2018 charge 1.46% management fees on average, marginally higher than the global industry average of 1.40%. The last two years saw the average management fees moving higher, following five consecutive years of decline.

Long Short Equities Strategy

North American hedge fund managers utilising long short equities strategy have successfully traded their way through the first seven months of 2018 to remain in the positive territory, returning 3.91% despite the volatile market situation. On the other hand, their peers focusing on Greater China mandate struggled under the escalation of the global trade friction. The Eurekahedge Greater China Long Short Equities Hedge Fund Index is down 2.58% year-to-date.

However, the losses posted by Greater China equities fund managers during the recent months were insignificant compared to the 31.88% gain they registered last year. In comparison, North American fund managers utilising long short equities strategy gained 9.53% in 2017.

Hedge Fund Launches and Closures

Preliminary estimates showed that hedge fund launches over the first three quarters of 2018 outpaced closures despite the difficult trading situation and volatile equity markets over the past few months. This marked a reversal from the trend of closures exceeding launches which has persisted since 2016.

Long Short Equities Strategy

Long Short Equities Strategy

Article by EurekaHedge

About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver