Opalesque Industry Update - According to Preqin’s Hedge Fund Analyst, hedge funds made gains of 11.08% for the 12-month period
ending 31 December 2013, ahead of the 10.13% returned in 2012, and the benchmark loss of -1.93% in
2011. Investors are largely satisfied with the performance in 2013; eighty-four percent of investors
interviewed for the 2014 Preqin Global Hedge Fund Report stated that returns expectations had been met or
exceeded in 2013.|
Other Key Facts:
“Much of the recent criticism faced by hedge funds has focused on hedge fund benchmarks being outperformed by leading equity indices, such as the S&P 500. In 2013, the Preqin Hedge Fund Index, a benchmark of average hedge fund returns, again lagged the S&P 500; however, despite this, investors are satisfied with the performance of hedge funds in 2013. Investors are now looking beyond absolute returns; they are also looking for funds to produce strong risk-adjusted returns with low volatility on a consistent basis. The performance of hedge funds over 2012 and 2013 has certainly delivered this.
Event driven and long/short funds led the way in terms of performance, with CTA funds producing disappointing returns for the third year in a row. Emerging market funds were unable to sustain the performance into 2013, posting just 5.86% compared to the 12.62% returned in 2012. However, Asia-Pacificfocused funds had another strong year, up 16.73%, making it the top performing region in 2013.”- Amy Bensted, Head of Hedge Fund Products - Preqin