Hedge Fund News: The Eurekahedge Report
From the Eurekahedge Report
We begin the year with the first Eurekahedge Report covering the US$2.23 trillion global hedge funds industry with an infographic overview, commentary alongside our coverage of monthly returns, performance and asset flows.
Our newest strategy profile features the Eurekahedge Artificial Intelligence (AI) Hedge Fund Index as it looks at the performance of hedge funds utilising artificial intelligence and machine learning theory in their trading processes. The strategy profile concludes with our interview with Mr. Yoshinori Nomura, Director at Simplex Asset Management who shares the nuts and bolts about his pure AI strategy and his views for the future of AI in the hedge fund industry.
Highlights from this month’s report
Hedge funds were up 4.48% for 2016, posting better performance compared to a modest 1.78% gain over 2015. Asset base for the industry contracted US$12.2 billion in 2016, on the back of steep redemption pressure with net outflows totalling US$42.5 billion for the year.
Asset base for relative value mandated hedge funds expanded 17.28% for the year, growing by US$9.8 billion. Relative value mandated hedge funds gained 6.30% in 2016, with underlying relative value volatility hedge funds up 7.22% over the same period.
European hedge funds saw US$24.6 billion in investor redemptions in 2016 – the largest net asset outflows on record since 2008.
CTA/managed futures mandated hedge funds saw the highest net investor inflows among strategic mandates for 2016 (US$12.7 billion). CTA/managed futures ended the year up 1.29% with strength led by underlying commodity-focused hedge funds which gained 6.96% over the same period.
Investor redemptions hit industry heavy-weights in 2016: billion dollar hedge funds recorded US$52.3 billion of net outflows whilst sub-billion dollar hedge funds saw net inflows of US$9.8 billion.
Asian managers saw a modest decline in assets for the year as sub-1% returns and US$2.2 billion of investor redemptions weighed on industry AUM. Underlying Greater China mandated hedge funds ended the year in negative territory, declining 4.46%.
North American hedge funds were up 7.80% for the year, with underlying long/short equities managers appearing as bright spots for the region – gaining 9.18% in 2016. North American long/short equities hedge fund managers posted their strongest quarterly gain in Q3 2016 (+4.47%).
Hedge Fund Research