Global Hedge Funds Show Signs Of Optimism

In 2016, hedge funds suffered a "black door". However, in February, when the MSCI global index fell by 1.43%, the Eurekahedge hedge fund index rose by 0.36% in February.

Hedge fund industry data tracking agency Eurekahedge report shows that in February this year, global hedge funds continued to be affected by declining performance and investor confidence. The total size of the hedge fund decreased by 20 billion 100 million US dollars, and nearly 65% of the fund managers suffered a decline in performance.

It is understood that the global hedge fund industry has been in the doldrums for more than a year. The Eurekahedge hedge fund index has risen 1.56% in 2015, far below other asset classes, and the lowest annual return since 2011.

Among them, Japan's worst performing hedge fund in February, the month's performance fell by 3.83%, which was mainly affected by the weakening of the Fed's stance at the time, resulting in the yen's stock market crash and other market factors.

In addition, Asia (excluding Japan) funds also declined for the two consecutive month. The performance in February dropped by 1.78%, slower than in January, making the fund performance in the first two months of this year -6.84%, the first two months of this year's performance was Asia (except Japan).

The worst in nearly 10 years.

Among them, the performance of the Greater China region and India region was the worst, down two and 8.54% respectively in the last 9.15% months.

Hedge fund performance declined for the third month in a row, and its performance declined by 3.28% in the 3 months since December last year.

The North American hedge fund is relatively optimistic. In February, it reversed the decline in January and edged up 0.74% in February.

In February, the scale of the fund showed that despite the $4 billion 100 million outflow of funds in the region, its performance was positive, resulting in an increase of $1 billion 700 million in size.

Overall, the poor performance in the first two months of the North led to a $6 billion 700 million impairment of the fund and a $2 billion 700 million outflow.

Latin America is the only region where the performance of hedge funds is positive, which is affected by the rebound in oil prices and commodities. The performance of hedge funds in the first two months of this year was 1.90%.

In February, the performance of hedge funds in the region rose by 2.14%.

According to the fund category, CTA (managed futures fund) has become the winner this year.

In February, the CTA fund was far ahead of 4.29% of its positive return, while the short and long term hedge fund was at the end of -4.08%.

This is in line with the performance in 2015. In 2015, the CTA fund fell 10.5% year-round, while the short and long term hedge funds rose 2.94%.

Overall, in January, the global hedge fund resulted in a $11 billion 900 million impairment in assets and a net outflow of $9 billion 200 million.

Statistics at the beginning of February showed that investment losses resulted in an impairment of assets of US $4 billion 700 million, and a net inflow of capital began to flow, with capital inflows reaching US $5 billion 600 million.

It is worth noting that the global hedge size data provided by Eurekahedge in the past 10 years show that the impact of the hedge fund industry earlier this year is obviously different from that of the 2008 financial crisis, indicating that the financial market turbulence is far less than that of the previous year.

In 2008, the scale of asset impairment and outflow caused by fund losses was almost the same. By the first half of 2009, although hedge fund performance began to grow, there was still a large amount of capital outflow from pessimism.

In the first two months of this year, the decline in hedge fund size was mainly due to performance losses. Investors began to buy optimism in February.