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Bailey McCann, Opalesque New York: Hedge funds achieved double-digit returns in 2023, led by equity strategies, according to research from asset servicer Citco. Citco oversees $1.8 trillion dollars of assets under administration.
Funds administered by Citco achieved a weighted average return of 14.66% for 2023 - a stark contrast to the previous year's figure of -7.02% - as a number of strategy types rebounded from a tougher 2022. In total, 80% of funds achieved positive returns for the year.
Equities, fixed income arbitrage and multi-strategy funds were the standout performers, all delivering double-digit returns. Equities led the way, with a weighted average return of 21.91% for 2023, followed by fixed income arbitrage at 12.63%, and multi-strategy at 12.56%.
Event driven funds achieved a weighted average return of 7.96%, while global macro funds just stayed in positive territory at 0.78%.
In a reversal of 2022, commodities strategies were the worst performer. They were the only grouping to have a negative return in 2023, with a weighted average return of -4.17%, although this followed a 20.43% gain in 2022.
On an assets under administration (AUA) basis, the largest funds went from
being the worst performers the previous year to the best in 2023, with a
weighted average return of 17.41%.
The divergence between the best and worst funds also narrowed in 2023,
with the rate of return spread between the top 10% of performers and the
bottom 10% ove...................... To view our full article Click here
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