AllAboutAlpha | Sep 28, 2016 12:31AM ET
Eurekahedge, a provider of hedge fund industry news since 2001, has released its report about the state of the industry in August 2016. Among the key points:
In tabular form, the performance based changes in assets and asset flows in 2016 are as below.
August in the Underlying Markets, and Volatility
But what was August 2016 like in the underlying markets where hedge funds must live and breathe and have their being?
As represented by the MSCI AS World Index (local), these markets grew 0.48%. It was as the authors of the report say a “relatively quiet month” where central banker announcements “dominated the trading scene.”
Looking at the CBOE Volatility Index for Eurekahedge, the Long Vol index was down for the month. Relative value, short, and tail risk were all in the positive numbers, with the tail risk index, which as its name (somewhat) suggests, tracks performance of those hedge fund managers who specifically seek to capture capital appreciation during times of extreme market stress, leading the table with a gain of 0.83% in August.
Incidentally, the report reminds us, the Brexit shock of June “did not work as well as expected for long volatility and tail risk strategies” because markets digested that news more smoothly than expected.
In graphic form, those results are below.
Latin America
The report observes that Latin American long/short equities have done well YTD 2016, as the underlying markets have responded favorably to the impeachment of Dilma Rousseff, the center-left president of Brazil ousted from power in a process that began late last year and that culminated on August 31, 2016. Also, the weakness of the US dollar has helped support the Latin American commodities sector in recent months.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.