Hedge fund are gaining ground for the third month consecutively. The Eurekahedge Hedge Fund Index advanced by 1.37% during November, outperforming the MSCI World Index, which added 1.27% during the last month, an Eurekahedge report sent to Insider Monkey stated.
The total amount of assets in the hedge fund industry amount to $1.97 trillion, which represents a new record which beats the $1.95 trillion amount posted in June 2008, Eurekahedge points out in its report. At the same time, net asset flows for the year, amounted to $122.2 billion. In Europe, fund managers gained 7.51% in November, since the beginning of the year, while net asset inflows for the year totaled $48.2 billion, which is the largest amount on record, the report also stated.
The report also said:
“Global markets remained upbeat on the back of positive macroeconomic data from the US, with incoming Fed chair Janet Yellen’s testimony before the Senate’s Banking Committee adding a further dose of optimism to the markets as she reiterated the necessity of the Fed’s QE program for an enduring recovery in the US economy. Meanwhile, European markets were supported by the ECB’s cut in its interest rates to 0.25% – the lowest on record as fears surfaced over the prospects of a deflationary spiral in the Euro zone region. Asian markets edged upwards on the back of strong third quarter GDP estimates from China, with markets reacting positively as details emerged regarding the CCP’s third plenary session.”
The regional indices, as usually show some discrepancies. The Eurekahedge Asia ex-Japan Hedge Fund Index experienced the highest growth, advancing by 1.73% during November. Since the beginning of the year, the index gained 12.65%, outperforming already the last year appreciation of 12.35%. It is followed by Eurekahedge North American Hedge Fund Index with a gain of 1.18% during last month. The top loser among regional indices in November was Eurekahedge Eastern Europe & Russia Hedge Fund Index, which lost 5.68%. It is also has the highest decline in year-to-date terms, losing 6.57% since January. In terms of year-to-date returns, the top gainer is Eurekahedge Japan Hedge Fund Index, which advanced by 24% since the beginning of the year, versus 5.95% during 2012.
Strategy indices, on the other hand, ended all mostly in green in November. The only index which lost ground is Eurekahedge Relative Value Hedge Fund Index, which edged down by 0.29%. The top gainer among strategy indices is Eurekahedge Fixed Income Hedge Fund Index, which posted a gain of 7.28%, also growing by 13.37% since the beginning of the year. The gain in this strategy was mainly caused by huge gains earned by several fixed income funds, which chose to invest in “bitcoins” during November, Eurekahedge said.
Some other gains have been posted by Eurekahedge Event Driven Hedge Fund Index, Eurekahedge CTA/Managed Futures Hedge Fund Index, and Eurekahedge Distressed Debt Hedge Fund Index, all three of which went up by 1.44%, 1.22%, and 1.19% respectively.
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