November Hedge Fund Performance: Trump, The U.S. Dollar And Eurozone Anxieties

Eurekahedge, a leading hedge fund database provider, provided an update on how hedge funds performed throughout November.

Hedge funds as a whole gained 0.48 percent through the end of November and have now gained 3.60 percent since the start of 2016. This compares to the MSCI AC World Index, which gained 2.88 percent in November and returned 4.88 percent since the start of the year.

Approximately 56 percent of funds represented in the Eurekahedge Hedge Fund Index gained in November, with the majority being long/short equities mandated.

North American hedge fund managers outperformed their international peers with gains of 2.07 percent. Event-driven hedge funds were the best performing type of fund with gains of 2.13 percent.

Among strategic mandates, hedge funds focused on distressed debt were the best performers since the start of 2016 with a year-to-date gain of 11.94 percent.

A Look At 2017

Eurekahedge is expecting 2017 to be more volatile for the market. Specifically, President-elect Donald Trump's economic plans could benefit the U.S. economy, but it could also have negative impacts on the domestic economy and the world economy given his protectionist trade policies.

Moreover, a continued strengthening of the U.S. dollar will "act as another check" on the domestic economic recovery, and the Federal Reserve may just implement one rate hike in 2017 "once the euphoria around Trumponomics is grounded."

Across the Atlantic, the eurozone will yet again be "another source of anxiety" for investors given the fragile economic condition, uncertainty over Brexit and social tensions from immigration policies.

Moving on to emerging economies, uncertainty from Trump's economic policies along with capital outflows could impact growth.