- Advertisement -
- Advertisement -

Observer Consensus: 7-Month Hedge Fund Surge At End

- Advertisement -

 Stockholm (HedgeNordic) – The verdict on October is in, by consensus of several major hedge fund observers, pointing to a universal drop across the hedge fund industry globally.

According to the Preqin All-Strategies Hedge Fund Benchmark, hedge fund database Eurekahedge and eVestment, the hedge fund industry finally saw its 7-month positive run come to a halt. As previously reported by HedgeNordic, eVestment found global hedge fund performance to be -0.76% in October. Now Eurekahedge pegs the decline at -0.35%, while Preqin recorded net returns of just 0.01%.

While most leading strategies, credit strategy funds and relative value funds among them, recorded modest gains during the month, Preqin reports, equity and event driven strategy funds both saw losses, returning -0.27% and -0.26% losses respectively. UCITS funds returned -0.15% for the month, while alternative mutual funds made more substantial losses of -1.40%. CTAs recorded their third consecutive month of losses, returning -1.74%. However, hedge funds have still posted overall gains of 5.46% so far in 2016, with 4.99% YTD. Emerging markets led the month’s performance with returns of +2.35%, far more than any other region.

“Unfortunately, in October this [the period of positive performance the past 7 months unmatched since 2012-2013]seems to have lost momentum, as the industry recorded near-flat performance,” says Amy Bensted, head of hedge fund products at Preqin. “However, many strategies and geographies have continued to make modest gains through the month, and the industry as a whole has not lost ground. Provided they can hold these gains in the last two months of the year, hedge funds are on course to mark their highest performance year since 2013.”

“Among other fund structures, however,” adds Ms Bensted, “the overall picture is less positive. CTAs, alternative mutual funds and UCITS funds are all showing negative performance over the past 12 months, and recorded losses in October. CTAs in particular have experienced their third consecutive month of losses, and are currently on course to record lower performance in 2016 than they did in 2015.”

Additionally, according to the latest figures released by EurekaHedge, hedge funds declined by 0.35% in October, albeit that the database also found hedge funds were up 2.98% YTD, with 20% of managers posting double-digit returns by comparison with 15% at the same point last year.

Eurekahedge found that Emerging Markets mandates again lead 2016 gains, this time up 10.18%. Distressed debt hedge funds posted the best returns in October and YTD, gaining 2.27% and 10.99% respectively. Strategic mandates posted the steepest declines in October, according to the Eurekahedge CTA/Managed Futures Hedge Fund Index, which was down 2.11%, with underlying trend following strategies declining 3.71% and commodity focused hedge funds losing 1.19%. Event driven hedge funds were also negative for October, declining 1.23%, followed by long/short equities and arbitrage hedge funds following mixed performance of global equity markets during the month.

Observers await the post-U.S. election hedge fund industry results for November with baited breath.



Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.


Most Popular This Week


Request for Proposal

- Advertisement -

Latest Articles

Brummer Multi-Strategy Navigates 2022’s “Perfect” Storm

Stockholm (HedgeNordic) – 2022 experienced a “perfect” inflation storm due to an unprecedented amount of monetary and fiscal policy stimulus during the pandemic, war,...

Dream Comes True for Grönblom

Stockholm (HedgeNordic) – Ernst Grönblom had been running his high-conviction strategy of cherry-picking the stock market’s undervalued future winners under the umbrella of United...

Boarding the Broader Alternatives Ship

Stockholm (HedgeNordic) – Tore Davidsen, portfolio manager of SEB Eureka Fixed Income Relative Value since its launch in 2018, will join BankInvest as Senior...

Year of Stabilization of Interest Rates

By Kari Vatanen, CIO of Veritas: The year 2022 was a year of negative surprises in the investment markets and in the global economy. Hopes...

Playing Offense in the Net-Zero Transition

Stockholm (HedgeNordic) – The world’s adoption of cleaner energy had been ongoing prior to Russia unleashing war in Ukraine. The war and its consequences...

Resscapital’s Key Appointment in Pursuit of Awareness

Stockholm (HedgeNordic) – To capitalise on strong performance and continued asset growth in 2022, Resscapital made a key appointment to its investor sales and relations...