The Eurekahedge Hedge Fund Index rallied 2.22 percent in January, supported by the global equity market rally which resulted from the Fed's dovish stance and optimism over potential progress in the US-China trade talks.
The MSCI AC World Index (Local) gained 7.36 percent over the month, recovering most of the losses it suffered in December last year. Returns were positive across geographic mandates, as most of the fund managers generated gains on the back of the equity market rallies around the globe.
North American fund managers gained 3.65 percent during the month, while their peers focusing on Asia ex-Japan generated 3.11 percent returns. The weaker US dollar and cautious tone of the Fed created tailwinds for the emerging markets throughout the month, resulting in one of the best monthly showing of the Eurekahedge Emerging Markets Hedge Fund Index in recent years, as it edged 5.46 percent higher in January.
Roughly 72.5 percent of underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in January, in contrast to how only 35.5 percent of these fund managers avoided losing money in December last year.
Fund managers utilising equity long-biased strategies topped the table with their 5.49 percent gain in January, while on the other end of the spectrum long volatility strategic mandate ended the month down 5.08 percent as market volatilities remained suppressed throughout the month.
Eurekahedge Hedge Fund Index, US-China Trade talks, North America, Cayman Island, Asia,