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Hedge funds start 2014 in the red - Preqin

Tuesday, February 18, 2014
Opalesque Industry Update - According to Preqin’s Hedge Fund Analyst, hedge funds made a loss of 0.17% in January 2014, the benchmark’s first month in negative territory since August 2013. The decline in equity markets led to negative returns posted by long/short funds; however these funds did outperform the S&P 500 Index, which was down more than 3.5% for the month. The best performing hedge fund strategies for January were relative value and event driven strategies, with these benchmarks up 0.77% and 0.66% respectively.

Other Key Facts:

  • Relative value was the top performing strategy benchmark in January 2014, as a result of strong gains posted by fixed income arbitrage (+1.60%) and relative value arbitrage (+1.43%) strategies.
  • Long/short was the worst performing strategy category, as a result of losses posted by long/short equity (-0.28%) and long bias (-1.45%) funds.
  • Macro strategies posted similar returns to the overall hedge fund benchmark (-0.15%).
  • CTAs were back in the red in January following three months of positive performance, with returns of -1.08%, taking 12-month returns to -2.59%.
  • Europe was the top performing regional benchmark with funds focused on the region returning 0.65%, marginally ahead of North America-focused funds (+0.55%).
  • Funds focused on emerging markets suffered notable losses, with average returns of -2.27%, and there were also negative monthly returns for funds focused on Asia-Pacific (-0.51%).
  • UCITS funds also posted losses in January with the average UCITS fund down 0.41%, as a result of negative returns posted by long/short (-0.76%) and macro funds (-0.12%).
  • Funds of hedge funds again underperformed compared to the overall hedge fund benchmark, with average returns of -0.57%.

Preqin

Press Release

BM

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