The Eurekahedge Hedge Fund Index declined -1.12% in November 2021, outperforming the worldwide fairness market as represented by the MSCI ACWI (Native) which returned -2.03% over the identical interval.
Danger aversion escalated in November over the emergence of a brand new Omicron variant of COVID-19 and considerations that it might result in a surge in COVID-19 instances and necessitate the reimposition of lockdowns.
Compounding issues additional, Federal Reserve Chairman Jerome Powell indicated {that a} swifter tapering of asset purchases was into account and that inflation ought to now not be described as transitory.
The ensuing uncertainty led to a surge in market volatility, as seen within the 67.22% improve within the CBOE VIX and negatively impacted the efficiency of worldwide equities.
The DJIA and S&P500 posted declines of -3.73% and -0.83% in November respectively, bringing their year-to-date return all the way down to 12.67% and 21.59% respectively. Over in Europe, returns had been unfavourable amongst fairness benchmarks within the area with the Euro Stoxx 50 and DAX down -4.41% and -3.75% respectively.
The emergence of the brand new Omicron coronavirus has already pressured some European nations to reintroduce restrictions on exercise, inflicting concern that this is able to negatively impression the progress of financial restoration.
Returns had been unfavourable throughout geographic mandates in November, with Asia ex-Japan hedge funds the one exception with a modest return of 0.02% whereas the North American and European mandates trailed behind with returns of -0.82% and -1.38% respectively.
Throughout methods, arbitrage hedge funds outperformed their strategic friends with a return of 0.34% in November whereas CTA/Managed Futures was the worst performer with a return of -2.19%.
