The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Hedge fund leverage: Batten down the hatches

Speakers at the EuroHedge Summit offered sound advice: leverage addicts were warned about the drug’s potency, and panickers were advised to panic in good time. Neil Wilson reports from Paris.

In association with Hedge Fund Intelligence


It was a gruesome first quarter for many hedge funds. On average, hedge funds globally dropped by more than 1.2% in March, to leave them down by an estimated average of 1.66% for Q1 as a whole, according to the HedgeFund Intelligence Global Index. But there were plenty of areas where the falls were much greater than the average.

Hedge funds in Asia were particularly hard hit, with the average fund dropping 2.52% in March to leave the AsiaHedge Composite down an estimated 5.36% for the first quarter. This was still significantly better than the Asia-Pacific equity markets – with the MSCI Pacific Free Net index dropping 9.57% over the same period. But it was obviously not a great performance – even after what was a very good year for Asia-Pac funds in 2007. And there were some particularly weak returns in Q1 among the single-country funds in India, China and Australia; in all those places, average long/short funds are now under water by more than double-digit amounts for the year to date.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree