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Alternative Market Briefing

North America-focused hedge funds outperforms, Preqin All-Strategies Hedge Fund benchmark tops 8.93%

Monday, September 17, 2018

Laxman Pai, Opalesque Asia:

With the exception of Europe and the Preqin All Emerging Markets benchmark, 12-month hedge fund returns are higher than three-year annualized returns across all regions, according to 2018 Performance Monitor: Hedge Funds by Geographic Focus by Prequin.

A statement from Prequin said that hedge funds focused on North America have outperformed the Preqin All-Strategies Hedge Fund benchmark in the previous 12 months with returns of 8.93%, while Europe-focused hedge funds underperformed the benchmark with returns of 4.26%.

Asia-Pacific (+7.11%) and emerging Asia (+7.01%) both had an excellent past 12 months, achieving similar returns to the Preqin All-Strategies Hedge Fund benchmark (+7.20%).

Institutional investors agree, as they reported the highest level of satisfaction with the performance of emerging markets-focused strategies, said the statement.

"The majority (70%) of investors interviewed at the end of 2017 cited performance as a key issue facing the industry in 2018. However, attitudes towards the hedge fund industry are improving: just under a third (29%) of investors stated their hedge fund investments fell short of expectations in 2017 compared with two-thirds of investors one year prior," said the statement.

Nearly half (45%) of investors interviewed by Preqin believe equity markets may have reached a peak. As a result, there is much appetite for diversifying strategies: 22% of investors surveyed believe emergin......................

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