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Alternative Market Briefing Weekly

Opalesque Roundup: Event-driven hedge funds on the rise: 13.9% CAGR expected next 10 years: hedge fund news

Saturday, March 23, 2024

In the week ending March 22nd 2023, a study revealed the global hedge fund market was valued at $4.8 trillion in 2022 and is estimated to reach $13 trillion by 2032, exhibiting a CAGR of 10.7% from 2023 to 2032. According to the Allied Market Research report, depending on the strategy, the long/short equity segment held the highest market share in 2022, accounting for more than one-fifth of the global hedge fund market revenue, this is attributed to increasing investor interest in active management and the pursuit of alpha, especially in times of market uncertainty. The event-driven segment is projected to register the highest CAGR of 13.9% from 2023 to 2032

The latest report from hedge fund administrator Citco shows that hedge funds maintained positive performance through the month of February. Funds administered by Citco delivered an overall weighted average return of 2% in February, to give them a year to date weighted average return of 3.5%.

71.8% of funds achieved a positive return overall in February, up from 64.5% the previous month. Equity funds were the standout performers with a weighted average return of 3.4% in February, almost double the 1.8% seen in January. Next were Multi-Strategy funds at 1.3%, followed by Fixed Income Arbitrage funds at 0.9%.

In new launches, Kimura Capital LLP, a London-based provider of trade finance credit for commodities, is starting a hedge fund as it looks to capitalize on resurgent investor interest in natural resources; Short seller Russell Clark, who shuttered his hedge fund two years ago after losing out to the longest running bull market in history, is preparing a comeback - he is considering a short-biased hedge fund, and Blackstone-backed ASK Asset and Wealth Managemen......................

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