- Advertisement -
- Advertisement -

Last Meal for Hedge Funds?

Report: Systematic Strategies

- Advertisement -

Stockholm (HedgeNordic) – Hedge funds gained 2.8% on average in January, notching up the strongest monthly return since September 2010 and enjoying the best first month for the industry since 2006. The strong performance comes on the back of a wild run for equity markets in January, which recorded their strongest January since 1997.

According to hedge fund data provider HFR, the hedge fund industry has now recorded 15 consecutive months of positive returns. The HFRI Fund Weighted Composite Index, an equal-weighted index that includes more than 1,500 single-manager hedge funds, gained 8.6% in 2017.

“After a historic year in 2017, hedge funds began 2018 extending strong gains, even as realized and implied volatility associated with global equities, currencies (including cryptocurrencies), commodities, fixed income and the outlook for global inflation all increased,” Kenneth J. Heinz, the president of HFR, said in a statement. “Hedge funds will continue to navigate these volatile markets and asset classes in 2018, monetising opportunities generated by US tax cuts and infrastructure spending, US monetary policy, and corporate M&A and special situations. These themes are likely to drive performance and industry growth in 2018,” he added.

Macro hedge funds collectively formed the best-performing group within the industry, recording the best monthly gain since February 2008. Macro strategies gained 3.7% last month, with quantitative trend-following CTA strategies leading the pack regarding performance. Equity-focused hedge funds also delivered strong gains, advancing 3.0% during the month.

U.S. equity markets rallied sharply in January before entering correction territory on Thursday this week, with global equity markets following suit. The Dow Jones Industrial Average dropped 2,776 points from its all-time high reached on January 26, equating to a 10.4% drop. The Dow posted a quadruple-point drop twice this week. The S&P 500 Index has also officially entered correction territory, with the benchmark closing 10% below its high on January 26.

 

Picture © alphaspirit—shutterstock.com

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

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Leadership Changes at AMF

Stockholm (HedgeNordic) – Swedish occupational pension fund AMF is set for a leadership change, appointing its head of asset management, Tomas Flodén, as the...

Ridge Capital Expands Team After Hitting €100 Million Milestone

Stockholm (HedgeNordic) – With its unconventional high-yield bond strategy now exceeding €100 million in assets under management, Ridge Capital is expanding its portfolio management...

“7 Years, Niller, Then You Know a Thing or Two”

Stockholm (HedgeNordic) – There is a Danish saying that goes, “7 years, Niller, then you know a thing or two,” suggesting that seven years...

Brobacke Gains 7.6% in Early July, Predicts Continued Bull Market

Stockholm (HedgeNordic) – After a relatively flat first half of 2024, marked by noticeable month-over-month volatility, discretionary macro fund Brobacke Global Allokering advanced 7.6...

Kristofer Barrett Back to Managing Tech Fund

Stockholm (HedgeNordic) – Kristofer Barrett, the former portfolio manager of the multi-billion-dollar Swedbank Robur Technology fund, has returned to managing a technology-focused equity fund....

Tidan’s Resurgence Amid Markets Needing a Touch of Magic

Stockholm (HedgeNordic) – In late 2021, Michael Falken and his team at Tidan Capital launched a hedge fund employing a capital structure relative value...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -