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In the week ending April 19th 2024, a new study pointed out that hedge funds led by new managers are responding to pressure to outperform against a backdrop of elevated interest rates. The 2023 edition of The Seward & Kissel New Manager Hedge Fund Study, revealed a substantial increase in the proportion of new managers launching with an incentive allocation hurdle, guaranteeing investors a baseline return before the manager takes a performance allocation.

Meanwhile, hedge funds enjoyed the best quarter since the pandemic in Q1 2024, with a weighted average return of 7.3%, as Equity funds delivered near double-digit returns. In total, 79.85% of funds administered by the Citco group of companies (Citco) achieved positive returns in Q1, with all strategy and Assets Under Administration (AUA) groupings in positive territory.

Further, hedge fund performance was generally positive in March; the average asset weighted hedge fund net return across all strategies was 2.06%. For a second month, all hedge fund strategy groups had positive average returns. Hedge fund performance dispersion was narrower than observed in February.

Incidentally, world's largest publicly traded hedge fund Man Group reported a nearly five percent increase in its assets under management (AUM) for the first quarter of 2024, compared to the last quarter of 2023. The British hedge fund manager said in a press release that its AUM totaled $175.7bn by 31 March, up from the $167.5bn reported at the end of the 2023 financial year. The increase was a result of a $9.8bn positive swing in investment performance, slightly offset by $1.6bn in net outflows, the active investment management firm said.

In new launches, Taconic Capital Advisors has launched a new he......................

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