Hedge funds up 0.55% in November
The Eurekahedge Hedge Fund Index was up 0.55%
in November 2010,with hedge funds recording flat to positive returns for the month acrossthe board. Hedge funds outperformed the underlying markets by 2.90%as the MSCI Word Index
dropped 2.35%.Below are the key highlights for November:
Early reporting funds indicate that US$5 billion went into theindustry in November.
Japanese hedge funds have outperformed the Topix by almost9% YTD November.
Distressed debt hedge funds were the top performing strategicmandate for the past two years, having gained almost 60% overthis period.
Asia ex-Japan funds have witnessed six months of back-to-backpositive returns, up 12.50%.
Table 1: Main Indices
Index Nov 2010Est
2010 YTDReturns 2009Returns Eurekahedge Hedge Fund Index 0.55 7.90 19.76Eurekahedge Fund of Funds Index 0.12 2.77 9.38Eurekahedge Long-Only AbsoluteReturn Fund Index0.64 11.31 47.28Eurekahedge UCITS Hedge FundIndex0.55 5.21 18.72
Managers investing in Japan posted excellent returns and healthy fundinflows amid a strong market rally. The Eurekahedge Japan Hedge FundIndex, boosted by the index majority of Japanese long/short equityhedge funds that maintained a net long bias position throughoutNovember, rose 2.42% in the month. Japanese managers have beenparticularly adept at navigating through the volatile equity markets thisyear – the Eurekahedge Japanese Long/Short Equity Index is up 2.48%YTD November while the Topix is down 5.14% over the same period.North American investing hedge funds also delivered noteworthy gains