The benchmark Eurekahedge Hedge Fund Index was up 3.30% in December 2020 and up 11.68% year-to-date. Total assets under management increased by US$42.6 billion during the month - the sector witnessed performance-based gains of US34.4 billion while registering net asset inflows of US$8.2 billion. The total size of the industry now stands at US$2,237.8 billion.
The Eurekahedge Hedge Fund Index was up 3.30% in December 2020, supported by the strong performance of the global equity market as represented by MSCI ACWI which gained 4.04% during the month. In 2020, global hedge funds ended the year in double-digit performance with 11.68% return, recording their best annual performance in over a decade, despite the ongoing pandemic. In the earlier months of 2020, the COVID-19 outbreak forced non-essential businesses to temporarily cease their operations. This in turn caused a shutdown of broader economic activity resulting in the sharp increase in unemployment rate. Unemployment rate reached 14.8% in April 2020 in the US – a level that has not been seen since the Great Depression. However, risk assets made a strong comeback since end-March, supported by the massive economic stimulus, low-interest rates, reopening of the major economies, and positive development of COVID-19 vaccines which boosted the performance of the global equity market.
The Eurekahedge Hedge Fund Index was up 3.41% in December 2020, bringing its 2020 return to 11.68% - its strongest annual performance in over a decade. The underlying global equity market as represented by MSCI ACWI gained 4.04% over the same month. Global hedge funds benefitted from the strong rally of risk assets during the month driven by the deployment of several COVID-19 vaccines and the passage of the new COVID-19 relief bill in the US, which was the second-largest economic stimulus in American history. In the US, NASDAQ Composite was up 5.65% in December, bringing its 2020 return to 43.64% compared to 19.30% of the S&P 500.
The Eurekahedge North American Hedge Fund Index was up 10.53% year-to-date as of November 2020, driven by the strong performance of the underlying equity market as represented by the MSCI North America IMI, which gained 13.32% over the same period. Supported by the strong performance of the equity market in the region, North American hedge funds quickly recovered from their 10.14% deficit in the first quarter which was their worst quarterly performance since inception due to the spread of the COVID-19 outbreak in the region.
Eurekahedge’s North American hedge funds infographic sums up the industry as at January 2021. Find out more about North American 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.