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Alternative Market Briefing

Hedge funds muddle through Q4

Friday, December 01, 2023

Bailey McCann, Opalesque New York:

Hedge funds administered by the Citco group of companies (Citco) saw performance dip once again in October, continuing the recent downward trend, with an overall weighted average return of -0.4% that matched September's figure, according to the fund administrator's latest report on hedge fund performance.

Commodities funds were the worst performers, with a weighted average return of -2.6%. Most other strategies also saw declines in performance but to a lesser extent, Citco's data shows. Event Driven funds had a weighted average return of -0.9%, followed by Multi-Strategy at -0.7%, Fixed Income Arbitrage at -0.6%, and Equities at -0.5%.

Global macro funds are the only funds posting positive returns. Funds in this strategy had a weighted return of 2.3% - extending a winning streak that started in the summer.

Outflows have continued although at a slower pace than September. According to the report, subscriptions of $6.1B were countered by $8.5B of redemptions, resulting in net outflows of $2.4B in October, down from the $9.1B of net outflows in September. Most of the outflows are in equities strategies as investors take profits on the back of solid performance from equities throughout most of the year.

On an Assets under Administration (AUA) basis, the largest and smallest funds saw net outflows, while other categories saw net inflows, the report said. The largest funds with more than $10B of AUA saw net outflows ......................

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