November 2008 Hedge Fund Performance

Date: Wednesday, December 10, 2008
Author: Eurekahedge

• Hedge funds lost 0.4% on average, in November. Over half the reporting funds posted gains for the month, while 40% were in the black for 2008 YTD.
• Industry assets fell by an estimated US$64 billion, US$18 billion of which was on account of net losses while net investor redemptions accounted for the other US$46 billion.
• Fixed income managers posted impressive gains; directional macro and CTA funds continued to perform well.
• Allocations to emerging markets outperformed those to developed markets, on the back of month-end equity rallies and a stronger rebound in the former.

Hedge funds continued to take losses for the sixth straight month in November, as major economies in Europe and Asia announced recessions and trading was characterised by distressed selling, deleveraging and an increasing disconnect between asset prices and underlying fundamentals. Early reporting funds put this month’s round of losses for the Eurekahedge Hedge Fund Index at -0.4%¹ . We expect final numbers to be closer to -2%. On the upside, month-to-month losses have been the least negative in the last five, while net redemptions are also slightly down from previous monthly highs.

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