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Hedge Funds Up 2.20% In January

Eurkeahedge published its February report today. Amongst the highlights:

  • Hedge funds started the year up 2.20% in January with managers reporting performance-based gains of US$20.3 billion while investor subscriptions stood at US$21.7 billion at the start of the year. In annual year 2017, final asset flow figures show that manager saw inflows totaling US$114.6 billion while performance-based gains stood at US$107.3 billion over the same period.
  • The Eurekahedge Billion Dollar Hedge Fund Index returned 1.77% in January; it's best monthly return since January 2012 which translated into performance-based gains of US$12.8 billion during the month with net inflows of US$12.8 billion recorded. Over the past year, billion dollar hedge funds recorded strong investor interest with net inflows totaling US$66.5 billion while performance-based gains stood at US$53.7 billion.
  • North American hedge funds registered the strongest growth in AUM among all regional mandates in 2017, growing their asset base by US$136.4 billion over the year. Investor allocations to the region stood at US$13.3 billion as of January 2018, while US$12.8 billion of performance-based gains were recorded. This brings the AUM of North American hedge fund industry to reach a record high of US$1.66 trillion.
  • Asia ex-Japan hedge funds started the year on a positive note, up 3.72% for the month with underlying Greater China focused funds up 7.82% over the same period while India focused hedge funds were down 0.50% during the month. The Asian hedge fund space expanded by US$24.8 billion in 2017 through a combination of investor flows and performance driven gains.
  • CTA/managed futures hedge funds posted the best January 2018 returns, gaining 3.54%, with underlying trend-following hedge funds leading much of the strength, up 4.72% over the same period. Underlying commodity-focused managers gained 2.28% while FX-focused peers were down a modest 0.18%. Managers reported performance-based gains of US$6.9 billion during the month, while net investor inflows of US$2.0 billion were recorded.
  • Among volatility-focused hedge funds, short volatility hedge funds posted the worst performance in January 2018, down 3.30% while tail risk and long volatility hedge funds gained 1.27% and 0.01% over the same period.
  • The Eurekahedge Crypto-Currency Hedge Fund Index was down 4.55% in January following gains of 1477.85% in 2017 as bitcoin began its tumble.
  • The Eurekahedge Islamic Fund Index gained 6.19% over 2017, posting its best annual performance since 2013, owing to the global equity market rally and recovering oil price. Malaysia and Saudi Arabia remained as the two prime choices for Islamic funds, accounting for nearly half of the industry population in terms of head office location and domicile.
  • The US$95.2 billion Islamic fund industry assets grew by nearly 17% over the year, with investor inflows contributing 80% of the total asset growth, indicating stronger investor confidence after two consecutive years of investor redemptions. For more details refer to this month's 2017 Overview: Key Trends in Islamic Funds report.