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Bailey McCann, Opalesque New York: Hedge funds continued their impressive run of performance in December, with an overall weighted average return of 2%, according to new data on funds administered by Citco.
All strategies saw positive performance. Event Driven funds achieved the highest weighted average return of 3.5%, followed by Equities at 3.3% and Fixed Income Arbitrage at 2.4%. On a fund size basis, all strategies had a second consecutive month of
positive returns. Funds with between $1B-$3B of assets under
administration (AUA) were the best performers, with a weighted average
return of 2.7%.
The rate of return spread - the difference between the 90th and
10th percentile fund returns - also improved dropping to 8.1%, after increasing to 11.8%
in November.
The run of positive performance did not equate to a month free of outflows, however. Both inflows and outflows were elevated in December with subscriptions more than doubling month-on-month to
$15.7B, while redemptions also jumped to $36.2B, leading to net outflows of $20.5B.
Multi-Strategy funds were the main drivers of investor flows, with $7.1 billion of subscriptions countered by $16.5 billion of redemptions, to leave net outflows
of $9.4 billion. Equities also saw elevated activity, with $3 billino of subscriptions and $10.5 billion of redemptions, to leave net outflows of $7.5 billion.
As we move into 2024, Citco says managers are focused on cash management. Hedge funds want to make sure th...................... To view our full article Click here
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