- Advertisement -
- Advertisement -

Related

Last Meal for Hedge Funds?

Latest Report

- 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

Ymer to Launch Fourth CLO Fund with Proven Strategy and Structure

Building on the track record of three previous credit funds, Swedish alternative credit specialist Ymer SC AB is preparing to roll out its fourth...

Quirky Questions for: Stefan Nilsson (Hedge Funds Club)

Not every conversation in the hedge fund world needs to revolve around alpha, Sharpe ratios, or fund flows. In the ongoing Quirky Questions series,...

Origo’s Johansson Returns to Sohn Conference with High-Conviction Pick

Swedish stock-picking boutique Origo Fonder is gaining fresh recognition following a strategic transformation, strong performance, and growing assets. The firm’s evolution into an “Origo...

Commodities Lift CTAs Amid Turmoil

In June 2025, the NHX CTA Index was up as losses in stocks and bonds were outweighed by profits in commodities, but briefly erupting...

Finserve Global Security Fund Boosts Quant Edge with Martin Redgård

Under lead portfolio manager Joakim Agerback, the Finserve Global Security Fund has successfully capitalized on the global surge in defense, cybersecurity, and space investments...

Visio Allocator Storms Back After Difficult March

After posting the worst monthly performance in its 15-year history with a 13.7 percent decline in March, the team behind the multi-strategy Visio Allocator...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.