New York (HedgeCo.net) - Hedge funds attracted $61 billion over the first 10 months of 2010, according to the November 2010 Eurekahedge Report, taking the hedge fund industry to $1.63 trillion, above October 2008 level.
Hedge funds are up 7.33%# YTD October, ahead of global markets by 4.64%. The Eurekahedge Long/Short Equity Hedge Fund Index is up 29.8% over the last 24 months and assets in long/short equity funds crossed US$500 billion.
All regional mandates delivered positive returns, with the exception of Japanese managers, as global markets kept up the momentum built up in September. A strong corporate earnings season and expectations of further quantitative easing resulted in healthy movements in the underlying markets. Asia ex-Japan funds continued their strong run, coming out on top for the fourth consecutive month, with gains of 3.08% and all strategies ending the month in positive territory. Managers investing in China witnessed a second month of excellent returns, up 3.78%, taking their two-month gain to 10.33%. Chinese managers were helped by a strong run in the underlying equity markets – the Shanghai Composite rose 11.53% while the Hang Seng gained 3.30%.
Managers in developed markets also registered some strong gains, with the Eurekahedge North American Hedge Fund Index gaining 2.47% in October. The healthy corporate earnings environment and increased investor confidence resulted in favourable conditions for equity based strategies – the S&P 500 was up 3.69% for the month.
Strong launch activity was seen in the first three quarters, with more than 600 funds launched in 2010 so far.