China-Focused Hedge Funds on Track to be Big Winners in 2017

12 Dec

China-Focused Hedge Funds on Track to be Big Winners in 2017

Hedge funds marked their 13th consecutive month of positive returns in November with +0.47% average returns for the month, bringing year-to-date (YDT) returns for the industry to +7.70%, according to the just-released November 2017 eVestment Hedge Fund Performance Report. Positive returns were well distributed among strategies and geographies, with 80% of hedge funds reporting to eVestment seeing positive returns for the month.

Unsurprisingly, with the run-up of stock markets around the world, equity-focused strategies have been among the strongest performers. Among primary strategies, Quantitative Directional Equity strategies were among top performers in November, returning +1.34% for the month and 9.49% YTD. Long/Short Equity and Event Driven-Activist strategies both returned about +1% for the month and have returned +10.79% and +11.04% respectively YTD.

Other interesting points from the November eVestment report include:

  • China-focused hedge funds are the big winners as 2017 comes to a close, returning +1.07% in November and +31.50% YTD.
  • Asia-focused funds in general are performing exceptionally well: India-focused funds returned +1.77% in November and +27.33% YTD; Asia ex-Japan-focused funds returned +0.72% in November and +19.74% YTD; and Japan-focused funds returned +1.05% in November and +12.64% YTD.
  • Russia- and Brazil-focused funds, the darlings of 2016 with returns for both north of +30% last year, have suffered in the second half of 2017. Russia-focused funds saw barely positive +0.41% returns in November, but YTD returns are still above average at +8.87%. Brazil-focused funds show a similar, but more negative, trajectory with November returns down at -1.02%, but YTD returns still positive at +13.34%.
  • In spite of overall strong returns, there were some losers in November: Macro funds and Convertible Arbitrage funds saw negative returns of -0.11% and -0.19% respectively, although both are holding on to positive returns for the past three months and YTD.

To download a full copy of the report, please click here.