Eurekahedge: Emerging market hedge funds triumphed in May

A weaker US dollar helped emerging market hedge funds outperform their developed market counterparts in May, reveals the Eurekahedge Hedge Fund Index.

The Eurekahedge Emerging Markets Hedge Fund Index was up 1.88% in May, as emerging markets equities benefitted from the 1.57% decline of the US Dollar Index during the same month. In terms of overall 2021 performance, emerging markets funds have returned 5.40%, said Eurekahedge, lagging behind their developed market counterparts as North American and European hedge funds returned 10.42% and 5.77% over the same period respectively.

Overall, Hedge fund managers were up 1.10% in May, supported by the strong performance of the global equity market which returned 0.83% during the month. For total 2021 performance so far, global hedge funds were up 7.96, recording the strongest May year-to-date return since 2009 despite the ongoing pandemic. Around 80.4% of the constituents of the Eurekahedge Hedge Fund Index generated positive returns in 2021.

Macro funds and managed futures were also up 1.79% and 1.54% respectively over the month. Managers focusing on cryptocurrencies were down 2.25% in May as tracked by the Eurekahedge Crypto-Currency Hedge Fund Index, outperforming Bitcoin which lost 32.88% over the same period. In terms of 2021 return, cryptocurrency hedge funds gained 137.63%, outperforming Bitcoin which returned 24.27% over the first 5 months of the year.

  

Pension funds bullish on metal prices, says report

European pension funds are confident that precious and industrial metals prices will increase over the next year, according to research from marketing and distribution firm NTree.

NTree spoke to 150 Europe-based pension funds, with a combined AUM of $223billion. Eighty-five percent of those pension funds said they expect the price of gold to increase over the next 12 months as jewellery consumption rebounds fully in line with the global economic recovery. 

Two thirds of pension investors also expect the price of platinum to increase, said the report, and 60% expect the price of silver to increase for the same reason.

“Our research highlights the post-pandemic economic recovery is having a positive impact on precious and industrial metal performance,” said Hamad Ebrahim, Head of Research at NTree. “Metals are particularly appealing to pension funds looking to diversify their portfolios and as a hedge against inflation.  Furthermore, metals such as palladium, copper and nickel are vital for the transition to a sustainable and greener economy, further increasing their appeal.”

NTree represents Global Palladium Fund (GPF) which has four metal ETCs (gold, silver, palladium and platinum) listed on the Deutsche Börse and London Stock Exchange. 

  

Foreside Financial boosts West Coast presence with acquisition

Boutique hedge fund compliance service Golden Bear Consulting Group has been acquired by risk management and compliance consulting firm Foreside Financial Group.

The purchase of Newport Beach, California-based Golden Bear will allow the Portland, Maine headquartered Foreside to expand its reach onto the West Coast and grow its private funds practice.

Founded in 2015, Golden Bear provides compliance solutions to private equity funds, hedge funds, emerging managers, and wealth managers.

“Golden Bear has ensured client success by helping them meet regulatory requirements through creative and practical compliance solutions that instill confidence in their investors,” said David Whitaker, president of Foreside. “Golden Bear shares our values of providing consistent quality of service with integrity, accountability, and innovation to its portfolio of clients. We are proud to welcome them to our team.”

Golden Bear’s employees will join Foreside under the acquisition and will continue to operate from Southern California.

The buy marks Foreside’s seventh acquisition since 2019, joining recent purchases NCS Regulatory Compliance, Compliance Advisory Services, Quasar Distributors, ICSGroup, Capital Markets Compliance, and JG Advisory Services. Foreside is majority-owned by PE firm Lovell Minnick.

Financial terms of the Golden Bear transaction were not disclosed.