This month’s Eurekahedge Report reports on a somewhat flat month for the industry. Negative returns in April affected most regional hedge funds as market sentiment became more risk-averse leading to declines across global markets. After a short few months of strong growth, attention returned to European debt issues, soft US economic data and slowing Chinese growth.
There were a few positive numbers to be found, however. the Eurekahedge North American Hedge Fund Index finished the month with positive returns of 0.08%, beating the S&P 500. Managers with positive returns banked on upbeat corporate earnings and the end of April saw a surge caused by speculation of further stimulus from the US Federal Reserve.
Emerging market hedge funds were up 0.54% in the month, bucking the trend from other regions and the underlying markets. Similarly, a 0.51% return by the Mizuho-Eurekahedge Asia Pacific Index showed that the larger asset managers in the region were able to manage volatility in the underlying markets. The index has also notched up strong returns by the end of April 2012 with gains of 5.47%.
Our special report this month focuses on Latin American hedge funds; a sector that has experienced tremendous growth in the last decade jumping from US$2.7 billion to US$58.9 billion in AUM. Latin American hedge funds have also started the year strong attracting US$1.2 billion in 1Q 2012 with gains of US$1.9 billion in perfor
Highlights from this month’s report:
- The asset-weighted Mizuho-Eurekahedge Top 100 Index increased 0.28% in April 2012, signaling a better month for larger funds.
- Hedge funds attracted US$10.4 billion during the month of April.
- Assets in North American hedge funds have increased by nearly US$40 billion since the start of the year.
- Relative value and fixed income hedge funds are a bright light in the industry – they have now witnessed five consecutive months of positive returns with gains of 5.91% and 4.56% respectively.
- Launch activity remained strong in 2012 with more than 150 funds launched worldwide as at the end of April 2012.
- Assets in distressed debt hedge funds were back above US$60 billion.
- The Eurekahedge Latin American Hedge Fund Index saw a surge of 6.45% at end-April 2012.