Asian hedgies make small gains in July

Date: Friday, August 12, 2011
Author: HedgeWeek

2011 continues to be a tough year for hedge funds globally, with Hedge Fund Research’s Composite Index reporting modest gain of +0.76 per cent to leave the sector up just 1.55 per cent YTD. Not exactly the diversified alpha clients hope for when investing in alternatives. Nevertheless, the HFRI Asia ex-Japan Index gained 1.44 per cent last month to help erode earlier losses although it’s still down -1.94 per cent for the year. Singapore’s Eurekahedge Asia ex-Japan Index came in with a slightly lower monthly figure of +1.26 per cent, noting that the majority of gains came from equity l/s funds. Greater China funds gained 1.06 per cent, but whilst India hedgies returned a negligible +0.15 per cent, they continue to have a horrible year, down nearly 7 per cent: in 2010 they returned +12.98 per cent. As mentioned, equity l/s funds had a strong month in July, returning +1.49 per cent but the best performing strategy was relative value, gaining 3.84 per cent. Although down 0.20 per cent for the month, event driven hedge funds remain the top performers in the region: up 7.77 per cent YTD.