Eurekahedge Asian Hedge Fund Awards 2020

January 2020 | Eurekahedge

The 17th annual Eurekahedge Asian Hedge Fund Awards will be held in Hong Kong for the first time on 24 June 2020 at Grand Hyatt. Stay tuned to this page for more updates.

Eurekahedge North American Hedge Fund Awards 2020

January 2020 | Eurekahedge

The 1st Eurekahedge North American Hedge Fund Awards will be held in New York for the first time on 27 May 2020 at Capitale. Stay tuned to this page for more updates.

The Eurekahedge Report - January 2020

January 2020 | Eurekahedge

The benchmark Eurekahedge Hedge Fund Index was up 1.57% in December and 8.74% year-to-date. Total assets under management increased by US$22.1 billion during the month as the sector witnessed performance-based increase of US$17.0 billion while registering net asset inflows of US$5.1 billion. The total size of the industry now stands at US$2,302.2 billion.

Asset Flows Update

January 2020 | Eurekahedge

The Eurekahedge Hedge Fund Index ended 2019 up 8.74%, recording its strongest annual performance since 2013. The global hedge fund industry has been supported by the global equity market rally on the back of the de-escalation of the US-China trade war and accommodative central bank policies. Positive geopolitical developments surrounding the trade war and Brexit have also sustained investors’ risk sentiment over the last quarter of the year. Returns were positive across regions, with Asia ex-Japan fund managers returning 2.58% in December, on the back of the region’s equity market rally. Fund managers focusing on Asia ex-Japan were up 12.03% over the year, outperforming their North American peers who returned 9.32% over the same period.

Hedge Fund Performance Commentary

January 2020 | Eurekahedge

The Eurekahedge Hedge Fund Index was up 1.57% in December and 8.74% for the year, recording its strongest annual return since 2013. The risk-on sentiment resulting from positive geopolitical development provided support for risk assets as the two-leading economies officially reached an agreement that de-escalated their 18-month long trade tension. The global equity market as represented by the MSCI ACWI (Local) ended 2019 up 23.44%. US equities recorded new all-time highs, with the S&P 500 up 2.86% in December on the back of market optimism toward the US-China phase-one deal which was signed in early 2020. Over in Europe, UK equities outperformed their European peers, thanks to the landslide victory of the UK Conservative Party, which resulted in better clarity surrounding Brexit. The FTSE 100 rose 2.67% during the month. On a similar note, positive trade development, monetary stimulus, and strong macroeconomic data acted as a tailwind to the performance of Asian equity markets, especi

Structured credit hedge funds: Staying ‘Sharpe’ in ultra-low rate environment

January 2020 | Eurekahedge

Structured credit traces its history back to the 20th century and has been a part of institutional and hedge fund portfolios for decades. Hedge fund managers focusing on structured credit could largely be dichotomised into those who generate returns from beta exposure to the asset class, and those who exploit mispriced instruments resulting from market inefficiency. Structured credit instruments result from the securitisation process in which multiple debt obligations are packed into interest-bearing securities whose cash flows are then sold to investors. This asset class has remained attractive to investors due to their ability to offer good return potentials and low rate of losses while providing diversification from other fixed income assets. The securitisation process also allows the final product to be tailored to an investor’s specific risk profile and constraints. On the other hand, the complexity of the instrument may result in heightened liquidity risk, and certain structured

Key Trends in Asian Hedge Funds (January 2020)

January 2020 | Eurekahedge

The Eurekahedge Asian Hedge Fund Index was up 7.41% year-to-date as of November 2019, supported by the robust performance of risk assets in the region resulting from the progress of the US-China trade talks. The underlying equity market, as represented by the MSCI AC Asia Pacific IMI gained 15.19% over the same period. The trade negotiation process between the two countries has faced considerable challenges throughout the year, notably when the PBOC allowed the yuan to weaken past the symbolic level of seven. The US Treasury department responded by labelling China as a currency manipulator, further escalating the tension between the two economies. However, market sentiment improved when the trade talks resumed in October, and finally concluded in a phase-one deal which was eventually signed in January 2020, shortly after the removal of China from the US Treasury list of currency manipulators. The positive geopolitical development surrounding the trade war boosted market sentiment and a

Asian Hedge Funds Infographic January 2020

January 2020 | Eurekahedge

Eurekahedge’s Asian hedge funds infographic sums up the industry as at January 2020. Find out more about Asian hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

CFTC Amendments to Registration and Compliance Rules — Lessons for Private Fund Managers

January 2020 | Brian T. Daly and Joshua B. Wright - Schulte Roth & Zabel LLP

On Nov. 25, 2019, the Commodity Futures Trading Commission approved amendments that impact several registration and reporting exemptions, which will affect many hedge fund and private equity fund managers. While, in general, these are long-needed changes that streamline administrative processes or harmonise CFTC rules with those of other regulators or with actual market practice, every private fund manager relying on a CFTC exemption should review the details of the changes.

EMIR Update: Regulatory Margin and the Introduction of Benchmark Fall-backs in OTC Derivative Contracts

January 2020 | Judith Lawless, Adrian Farrell and Imelda Higgins - McCann FitzGerald

The European Supervisory Authorities (the “ESAs”) have published joint draft Regulatory Technical Standards (“RTS”) to amend Commission Delegated Regulation 2016/2251 (the “CDR”) on the risk mitigation techniques for non-cleared OTC derivatives including in respect of the phase-in of the regulatory initial margin requirements. As the deadlines and expiry of derogations the subject of the proposed amendments are fast approaching, and RTS need to go through various steps before being finalised and entering into force (endorsement by the European Commission and scrutiny and non-objection by the European Parliament and the Council), the ESAs have stated that they “expect competent authorities to apply the EU framework in a risk-based and proportionate manner until the amended RTS enter into force”.

FinSA and FinIA enter into effect on 1 January 2020 - But a lot of provisions do not apply immediately

January 2020 | Dr Matthias Kuert - CMS von Erlach Poncet AG

On 6 November 2019, the Swiss Federal Council decided that the Swiss Financial Services Act (FinSA) and the Swiss Financial Institutions Act (FinIA) will enter into effect on 1 January 2020. Concurrently, the final versions of the Financial Services Ordinance (FinSO) and the Financial Institutions Ordinance (FinIO) (as well as the Supervisory Organisation Ordinance (SOO)) containing the implementing provisions for FinSA and FinIA were published.