India, China Funds Shine in Tough November for Hedge Funds

11 Dec

India, China Funds Shine in Tough November for Hedge Funds

The global hedge fund industry returned -0.31% in November, bringing year-to-date returns to -2.81% and marking the fourth consecutive month of negative industry returns, according to the just released eVestment November 2018 hedge fund performance data.

The negative 2018 YTD numbers are in stark contrast to the +8.96% aggregate return the industry saw in 2017. And while almost all segments of the hedge fund industry put up positive results in 2017, The vast majority of fund types are negative so far this year.

A few key points from the latest data include:

  • India- and China-focused funds put up surprisingly strong returns in November, compared to their more than lackluster performance so far this year. India-focused funds returned +8.53% in November and China-focused funds returned +4.10% last month. However, these funds are still deeply in the red for the year, with India-focused funds at -16.33% YTD and China-focused funds at -13.25% YTD.
  • Among primary hedge fund markets, Volatility/Options Strategies were the only funds to post positive returns in November, at +0.85%. However, these funds are still negative YTD at -0.65%.
  • All other primary markets were negative in November, with Commodities funds seeing the biggest losses for the month at -1.10%.
  • Among primary strategies, Origination & Finance funds were among the few winners in November, returning +0.66%, bringing their YTD returns to a healthy +4.80%.
  • Relative Value Credit funds and Convertible Arbitrage funds also saw positive returns in November, although just barely for the latter at +0.02%.
  • Market Neutral Equity funds were the big losers among primary strategies in November, with returns of -2.90% for the month, bringing these funds’ YTD returns to -4.37%

Below is the full data set. To review and download all free eVestment research reports, please click here.

Industry BenchmarksNovLast 3moYTD 20182017
Hedge Fund Aggregate-0.31%-3.47%-2.81%8.96%
50% MSCI World/50% Citi WGBI0.81%-3.67%-2.05%14.75%
S&P 5002.04%-4.40%5.11%21.83%
Primary MarketsNovLast 3moYTD 20182017
Volatility/Options Strategies0.85%-0.52%-0.65%4.86%
Broad Financial Derivatives-0.12%-3.89%-5.45%2.30%
Equity-0.25%-5.16%-4.15%13.48%
Broad Capital Structure-0.27%-2.33%-0.47%9.05%
Broad Multi-Market-0.38%-2.23%-3.20%4.70%
Fixed Income/Credit-0.48%-0.65%1.10%6.04%
FX/Currency-0.93%-0.13%0.40%-3.46%
Commodities-1.10%-2.10%-4.64%0.51%
Primary StrategyNovLast 3moYTD 20182017
Origination & Financing0.66%0.46%4.80%6.90%
Relative Value Credit0.35%0.23%1.32%5.66%
Convertible Arbitrage0.02%-1.46%-0.47%5.71%
Managed Futures-0.11%-4.38%-6.38%2.65%
Event Driven-0.33%-1.83%0.81%7.40%
Macro-0.37%-1.38%-2.79%4.10%
Directional Credit-0.46%-0.82%1.88%5.30%
Multi-Strategy Credit-0.47%-0.77%1.74%5.71%
Distressed-0.50%-0.68%3.30%6.53%
Long/Short Equity-0.50%-5.51%-2.41%12.14%
Multi-Strategy-0.79%-2.76%-2.37%6.80%
Quantitative Directional Equity-1.33%-4.13%-3.33%10.48%
Event Driven – Activist-1.70%-7.16%-7.18%11.36%
Market Neutral Equity-2.90%-3.96%-4.37%3.49%

 

Prominent Universes by SizeNovLast 3moYTD 20182017
Ten Largest Hedge Funds-0.67%-1.06%0.26%5.26%
Ten Largest Macro0.10%0.60%1.59%1.56%
Ten Largest Long/Short Equity-0.29%-3.42%-3.67%9.09%
Ten Largest Managed Futures-1.70%-3.67%-6.67%3.38%

 

Economic DevelopmentNovLast 3moYTD 20182017
Emerging Markets1.56%-3.18%-9.78%19.57%
Country ExposureNovLast 3moYTD 20182017
India8.53%-6.47%-16.33%32.87%
China4.10%-6.28%-13.25%34.76%
Russia0.29%-1.08%-10.53%12.99%
Brazil-0.90%12.75%-1.32%14.78%