The benchmark Eurekahedge Hedge Fund Index was up 1.06% in March, 4.36% year-to-date. Total assets under management increased by US$1.8 billion during the month as the sector witnessed a performance-based increase of US$9.8 billion while registering net asset outflows of US$8.0 billion. The total size of the industry now stands at US$2.31 trillion.
The Eurekahedge Hedge Fund Index was up 1.06% in March, wrapping the first quarter of the year gaining 4.36% year-to-date. Hedge fund managers narrowly trailed behind the global equity market as represented by the MSCI AC World Index which gained 1.09% in March. The global equity and bond markets have rallied through the first quarter of 2019, supported by the dovish stance exhibited by major central banks, as well as the optimism over the US-China trade negotiations. On the other hand, concerns over slowing economic growth have persisted through the quarter, with growth forecasts being cut. The majority of hedge fund managers tracked by Eurekahedge recorded positive returns in March, with those focusing on Asia ex-Japan countries posting strongest gains. Despite the positive performance exhibited by hedge fund managers, investor appetite remained muted as the industry saw net investor outflows throughout the month.
The Eurekahedge Hedge Fund Index gained 1.06% in March , resulting in the strongest post-crisis Q1 return of 4.36%. Hedge fund managers recorded three consecutive months of positive performance, supported by strength in the global equity and bond markets as central banks shy away from tight monetary policies. Optimism over the progress of the US-China trade talks helped bolster the equity markets around the globe, counterbalancing concerns over economic growth slowdown.
ANDA Cruise, FengHe Asia Fund, Golden Pine Fund, KS Asia Absolute Return Fund, Realm High Income Fund, and Segantii Asia Pacific Equity Multi-Strategy Fund outshine peers in 2018 The Asian hedge fund managers tracked by Eurekahedge ended 2018 down 8.71% on average, recording their worst yearly performance since the 2008 global financial crisis. In spite of a strong start in January, the return of market volatilities in February and the escalation of the trade tension between the United States and China pushed the majority of Asian hedge funds into the red for the year. Compared to their global peers, fund managers focusing on Asia suffered heavier blows from the equity market sell-offs in response to the US Federal Reserves aggressive rate hikes throughout the year.
The Eurekahedge Asian Hedge Fund Index was up 4.15% year-to-date as of February 2019, trailing behind the underlying equity market represented by the MSCI AC Asia Pacific IMI which gained 8.56% over the same period. Asian hedge funds recovered from the losses incurred in 2018 as a result of the escalation of the international trade conflict between the worlds two largest economies, and the aggressive Fed rate hikes which triggered equity sell-offs in October and December 2018. In 2019, the Trump administration delayed the scheduled tariff increase to Chinese imported goods, reflecting the progress of the trade talks between the US and China.
Eurekahedges Asian hedge funds infographic sums up the industry as at April 2019. Find out more about Asian hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
The Eurekahedge Hedge Fund Index was up 3.28% as of February 2019 year-to-date as the industry recovered from the losses suffered in 2018. Last year, hedge funds recorded their worst annual performance since the 2008 global financial crisis as the escalation of the US-China trade war, aggressive rate hikes from the US Federal Reserve, and concerns over slowing global growth weighed on global equities. Going into 2019, the risk sentiment had improved due to the progress of the US-China trade negotiations, which showed that both parties are serious in resolving the conflicts between their trade and industrial policies.
Eurekahedges global hedge funds infographic sums up the industry as at April 2019. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
April 2019 Leonard Ng and Chris Poon – Sidley Austin LLP
Key changes to the scope of EMIR which asset managers should be aware of as a result of EMIR REFIT are -a broadening of the definition of a financial counterparty (FC), such that all non-EU funds will be categorised by EU dealers as third-country entity FCs (as opposed to third-country entity NFCs); and -the introduction of an exemption from the clearing obligation for FCs below a certain threshold (FC-s).
April 2019 Laura Fraedrich, Chase D. Kaniecki, Justin T. Huff and John Cheretis – Jones Day
Last year, the president signed FIRRMA into law, clarifying how CFIUS will treat investments made by private equity funds subject to future regulations, and simultaneously expanding CFIUS jurisdiction to encompass non-controlling investments in critical infrastructure and critical technology companies, as well as companies that maintain or collect sensitive data of U.S. citizens (collectively Sensitive U.S. Businesses). This expanded jurisdiction will have a significant impact on foreign investors generally, as well as U.S. private equity funds with foreign general or limited partners.
April 2019 Christopher M. Vaughn and Philip T. von Mehren – Venable LLP
On October 5, 2018, the president signed Public Law 115-254 into law the Better Utilisation of Investments Leading to Development Act of 2018 (BUILD Act). The BUILD Act creates the United States International Development Finance Corporation (IDFC), a new wholly owned government corporation. It will replace the Overseas Private Investment Corporation (OPIC) and transfer, among other functions, the Development Credit Authority from the U.S. Agency for International Development (USAID) to the IDFC. It is subject to reauthorisation in seven years.
April 2019 Jessie M. Gabriel and Tara Ravi – Baker & Hostetler LLP
Just a few years ago, investment in womens health was sparse. Global funding for the femtech sector had barely reached $100 million and there continued to be a glaring lack of research into critical areas such as female heart disease and gynecological disorders. That is finally changing, driven in large part by female funders who have identified the value in the sector and have started putting their money to work.