Research

The Eurekahedge Report - July 2020

July 2020 | Eurekahedge


The benchmark Eurekahedge Hedge Fund Index was up 1.38% in June 2020 and down 1.29% year-to-date. Total assets under management decreased by US$4.3 billion during the month as the sector witnessed performance-based gains of US$2.2 billion while registering net asset outflows of US$6.6 billion. The total size of the industry now stands at US$2,104.6 billion.

Asset Flows Update

July 2020 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 1.38% in June, supported by the strong performance of the global equity market as represented by the MSCI ACWI IMI (Local), which returned 2.70% over the same month. The resumption of the economic activity of most countries, particularly in Europe and the US combined with an upbeat macroeconomic data, boosted market optimism towards a faster-than-expected recovery of the global economy from the crisis, which provided support to the performance of risk assets. In the US, strong labour data was recorded, particularly the nonfarm payroll that beat the market expectation by a substantial margin, acted as a tailwind to the performance in the region's equity market.

Hedge Fund Performance Commentary

July 2020 | Eurekahedge


The Eurekahedge Hedge Fund Index was up 1.38% in June, driven by the strong performance of the global equity market as represented by the MSCI ACWI IMI (Local), which gained 2.70% over the same month. Global equities benefitted from the resumption of economic activity of most countries combined with an upbeat macroeconomic data boosting investors' optimism towards a faster-than-expected recovery of the global economy from the crisis. The US equity benchmark registered strong performance, as the labour data, particularly the nonfarm payroll, beat the market consensus by a substantial margin. The tech-heavy NASDAQ was up 4.05% in June, bringing its year-to-date return to 10.05%, while the S&P500 was up 0.87% during the month. In the same vein, European equities rallied, supported by the proposed stimulus package totalling 750 billion euros by the EU leaders to soothe the economic pain brought by the coronavirus. The DAX and CAC 40 were up 6.25% and 5.12% over the month, respectively.

Greater China equity hedge funds: recovery in sight?

July 2020 | Eurekahedge


Greater China equity hedge funds ended 2019 up 15.49%, supported by the strong performance of the Chinese equity markets throughout the year on the back of improving geopolitical situations and accommodative central bank policies. The Eurekahedge Greater China Long Short Equities Hedge Fund Index which tracks 55 active Greater China-focused hedge funds utilising equity strategies slumped 14.74% in 2018 as mounting pressure from the escalating trade tension between China and the US weighed on the performance of Chinese equity markets. Volatile trading condition and various political concerns took their toll on Greater China equity hedge funds as they ended nine of the months of 2018 in the red. On top of the tariff spat between the Chinese government and the Trump administration, the continual protests in Hong Kong which resulted from the introduction of an extradition bill in early 2019 has also acted as a major headwind for the city state’s economic outlook throughout the year.

Key Trends in Long-Only Absolute Return Funds (July 2020)

July 2020 | Eurekahedge


The Eurekahedge Long-Only Absolute Return Fund Index was down 11.09% as of May 2020 year-to-date, trailing behind with their hedge funds and funds of funds counterparts who loss 2.62% and 3.05% over the same period respectively. In 2019, absolute return funds recorded a 16.31% return as they benefitted from the robust performance of the global equity market on the back of positive geopolitical development and accommodative central bank policies.

Long-Only Absolute Return Funds Infographic July 2020

July 2020 | Eurekahedge


Eurekahedge’s long-only absolute return funds infographic sums up the industry as at July 2020. Find out more about long-only absolute return 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.

Interview with Michael Günther, Portfolio Manager at Tungsten Investment Funds

July 2020 | Eurekahedge


Michael Günther has been a member of the Executive Board of TRYCON G.C.M. AG since 2002 and since 2013 a portfolio manager at Tungsten Capital, an asset management company based in Frankfurt am Main. Since the year 2000, he has dealt with systematic trading strategies and the application of machine learning and artificial intelligence to the financial markets. In the integration of these technologies in investment decisions, he is one of the pioneers in Germany. Michael Guenther, together with Pablo Hess, is responsible for the development of the proprietary portfolio software QuantMatrix, which applies artificial intelligence and machine learning for the trading strategy of the Tungsten TRYCON fund. The multi-asset long / short fund Tungsten TRYCON AI Global Markets, managed by the two, provides investors with access to new data analysis technologies and artificial intelligence and has received several awards.

Interview with Oleksandra Polishchuk, Head of Business Development and Investor Relations of Carlisle Management Company

July 2020 | Eurekahedge


Established in 2008, Carlisle is a leading, highly diversified global investment management firm. Our state-of-the-art facilities and statistical modelling systems incorporate knowledge gained from 60+ years of combined investment experience within the alternative asset sector. Supervised by the Luxembourg regulator and being subject to controls of reputable audit firms at both management company and fund level, we operate independently, which allows us to focus solely on investors call for transparency and performance, within a regulated framework providing accurate management of the risks involved while maximizing investment returns.

Interview with Jesse Liu, Cofounder & CIO of Urania Capital Management

July 2020 | Eurekahedge


Jesse is director, chief investment officer and portfolio manager of Urania Capital Management Ltd. Before co-­-founding Urania Capital Ltd, Jesse has been managing money for friends and families for many years through “managed accounts” consistently outperforming S&P 500 index and generating solid risk­-adjusted returns and high alpha. Jesse developed and refined his unique stock market investment philosophy and methodologies through and combining (1) 30 years of stock market investment study and practice, (2) 30 years of experience in starting and managing businesses in various functional capacities, (3) deep understanding of corporate finances, accounting and business Numbers as chief financial officer of private and public companies, and (4) extensive knowledge and application of Mathematical and statistical models. Jesse holds an MBA from Columbia University and a MS in Engineering from Iowa State University.

Interview with Fabrice Tischhauser, CFA, CEO and Dmitry Sukhanov, Head of Research and Development of Quant Infinity Group

July 2020 | Eurekahedge


Quant Infinity is a data science company that develops algorithmic trading solutions based on Artificial Intelligence (AI) and Machine Learning (ML), specifically for investment funds and asset management companies