The Eurekahedge Hedge Fund Index gained 6.19% through 2012 as the global hedge fund industry hit assets under management of $1.77trn, helped by a global market rally toward the year end.
Figures in the January Eurekahedge Report show that industry assets grew by $64.5bn over the year, with the bulk of this gain from North American hedge funds. They grew assets by $48.7 or 4.18%.
Relative value mandated funds experienced the biggest increase in AUM, up $13.3bn or 27.5% over the year, Eurekahedge said.
Funds allocating to emerging markets posted the strongest returns for the year. The Eurekahedge Asia ex-Japan Hedge Fund Index gained 11.89% during the year while the Eurekahedge Latin American Hedge Fund Index was up 10.56%.
“Asia’s major equity markets were strong in 2012 with double digit returns in Hong Kong, Japan, Australia, New Zealand and India. Many of Asia’s long/short equity funds and multi strategy funds profited by maintaining a long bias in their portfolios. In addition emerging market currencies strengthened against the US dollar, euro and Swiss franc, adding an additional layer of profits for funds investing in the regional markets using local currencies but with one of the aforementioned as the base currency,” Eurekahedge said.
Returns across regions
Returns across strategies
In terms of asset weighted index returns, the Mizuho-Eurekahedge Index ended the year with gains of 5.84%.
The Mizuho-Eurekahedge Asia Pacific Index was up 8.92% while the Mizuho-Eurekahedge Asia ex-Japan Index was up 14.80% over the year.
“Equity investing funds posted the largest returns among strategies with long/short equity managers delivering 6.95% for the year and event driven funds gaining 9.40%,” Eurekahedge said.