Global equity markets rose in unison during February with a return of investor risk appetite as the market downplayed fears of contagion from a possible ‘Grexit’; further supported by accommodative monetary policies from central banks around the world. Volatility faded away along with increased investor confidence and rising equity markets with the CBOE VIX falling from 20.97 to 13.34.
- Hedge funds grew their asset base by over $30 billion in the first two months of 2015 as investors allocated $12.3 billion in February alone.
- Europe investing funds have delivered the best returns globally and are up 2.29% for the month, led by Eastern Europe focused funds which gained 12.49%.
- CTA/managed futures funds have reported asset inflows of US$6.3 billion for February year-to-date, reversing a trend of nearly uninterrupted outflows since 2H 2013.
- North America mandated hedge funds have grown their asset base by US$235 billion since the start of 2013, accounting for roughly 67% of all global assets into hedge funds. For more details please view our ‘2014 Overview: Key Trends in North American Hedge Funds’ report.
- Event driven funds have reported performance-based gains of US$1.6 billion during the month, corresponding to returns of 2.90%, the highest out of all strategic mandates.
The Federal Reserve was seen to be coming under increasing pressure to raise interest rates given the strengthening US economy, though Yellen currently appears content to adopt a ‘wait and see’ approach of preferring to raise rates too late rather than too early, which helped to send US equity markets into record territory once again.
Meanwhile, the Greek situation was still at an impasse, although it managed to avoid a short-term default by securing a four month extension of the current bailout programme while negotiations continue.
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