Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund industry AuM declined by $78.8bn in H1-2022

Thursday, August 11, 2022
Opalesque Industry Update - Hedge funds faced a challenging half-year during H1 2022 as geopolitical and macro-economic events sparked market chaos and a rare, concerted sell-off in stocks and bonds, according to the With Intelligence Spotlight Report "Hedge Funds in H1 2022". However, this is not the sudden shock of Covid-hit H1 2020 but rather a steady, negative development during the past three quarters. Hedge funds have still fared better than US large-cap stocks, for example, and there is an opportunity to take advantage of the volatility and weak economic forecasts and outperform.

Key Highlights of H1 2022

- The Eurekahedge Global Composite Index was down 5.4% for H1 2022. There was a contrast in performance between $1bn-plus funds and sub-$1bn funds as larger funds saw lower losses of 1.9% compared to losses of 5.5% for the sub-$1bn category.

- AuM has declined by $78.8bn during the first six months of 2022, driven by $37.7bn of performance-based decline and $41.1bn of net outflows. The industry total stands at $4.02tn at the end of H1.

- Europe posted the sharpest H1 net outflows of $36.0bn as investor sentiment in the region was most impacted by the ongoing Russia-Ukraine conflict and European dependence on Russian energy supplies. By contrast, North America and Asia recorded smaller AuM declines of $11.5bn and $14.5bn, respectively.

- Fixed income (-$21.6bn) and long/short equities (-$21.2bn) posted the steepest outflows in H1 as the two strategies struggled amid the rising interest rate environment, resulting in performance-based declines of $23.4bn and $40.9bn, respectively.

- Most major asset classes ended H1 2022 in negative territory with bond markets recording their worst six-month period since 1900, while the S&P 500 recorded its worst H1 since 1970. Despite this, hedge funds have outperformed the S&P 500 (-5.4% vs -20.6%) with CTAs performing best due to their downside protection strategies and adapted, shortened timeframes for hedging equity corrections.

- Defensive strategies continued to outperform, with managed futures/CTA adding to Q1 gains to finish the half up 7.3%, delivering at a critical time for investors just as in 2008.

- The industry experienced its third straight quarter of outflows in Q2 2022. After redemptions of $13.5bn in Q1 2022, there were further outflows of $26.6bn in Q2, as investors hunted for liquidity to give them flexibility at a time of crisis.


Source: withintelligence.com

Press release
Bg

Article source - Opalesque is not responsible for the content of external internet sites

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1