Hedge funds continued their recovery in the fourth quarter and gained 0.88 percent in November, according to data provider Eurekahedge. The Eurekahedge Hedge Fund Index outperformed global equities such as the MSCI World Index which grew by 0.38 percent during the month.
Hedge funds are up 2.58 percent for the year to date, whereas underlying markets such as the MSCI World gained 1.78 percent. However, this is well below last year’s gains of 4.61 percent during the same period.
Total assets managed by hedge funds have grown by US$100 billion in 2015, with about three-quarters of the gains coming from investor flows, Eurekahedge reported in its December Index Flash Update.
Regionally, Japanese managers lead the developed markets with year-to-date gains of 6.36 percent, followed by European managers up 4.95 percent, while North American managers are set to post their worst annual return since 2011 with gains of only 0.90 percent through November.
In emerging markets, Asia ex-Japan mandated hedge funds are up 7.15 percent so far this year, with funds investing in Greater China driving the performance with gains of nearly 9 percent.
Distressed debt funds have posted the worst return among all hedge fund strategic mandates on a year-to-date basis. They are down 3.92 percent and on track to deliver their worst performance since 2008.
Relative value volatility funds, in turn, posted the best performance with gains of 5.58 percent in 2015.