Mon, Dec 5, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Preqin: hedge funds post mixed results in February

Monday, March 14, 2016
Opalesque Industry Update - The hedge fund industry improved on losses of 2.69% in January but still posted negative performance of -0.06% in February. Macro strategies posted the greatest gains (0.55%) and are the only leading hedge fund strategy to hold a positive 2016 year-to-date return (0.88%). In comparison, credit strategies continued to struggle, recording their fourth consecutive month of negative returns with losses of 0.86%. 2016 YTD performance for the strategy is now at -1.92%.

Meanwhile, CTAs continued their robust performance with gains of 2.18% in February. This represents their best monthly return since January 2015, and marks the first time in that period that CTAs have posted two consecutive months of positive performance. Building on gains of 0.95% in January, February’s returns take the 2016 YTD benchmark for CTAs to 3.15%.

Other Key Hedge Fund Performance Statistics:

  • Systematic Strategies: Systematic hedge funds again outperformed discretionary funds, adding 0.91% in February to take year-to-date returns to 0.01%. Discretionary funds continued to suffer losses in 2016 YTD, with February’s return of -0.39% following January’s negative performance of -3.18%.
  • Equity Strategies Struggle: Equity strategies returned -0.08% in February 2016, following losses of 4.31% in January. However, many equity markets, such as the S&P 500 which lost 0.41% in February, suffered greater losses.
  • Emerging Funds Outperform: Emerging hedge funds (those with less than $100mn in AUM) were the only size class* to see positive returns in February posting 0.14%. Funds larger than $1bn returned -0.76%, while medium-sized funds (those between $500-999bn) saw the greatest losses of -1.00%.
  • Liquid Alternatives Post Further Losses: Alternative mutual funds and UCITS hedge funds posted further losses in February (-0.24% and -0.92% respectively). 12-month returns for both fund types are also negative, with alternative mutual funds at -6.55% and UCITS at -5.58%.
  • Emerging Markets Bounce Back: Emerging Markets funds posted gains of 1.61% in February, the greatest monthly returns of any geography, having lost 3.12% in January. North America-focused funds made gains of 0.21% and Europe-focused vehicles returned -0.31%.


“Hedge funds posted a near neutral return in February 2016 as many traditional markets showed continued problems over the month. In a period where investors may be suffering large losses from traditional products in their portfolios, the ability of hedge funds to help investors weather turbulent markets and preserve investor capital is an attractive feature of these alternative funds to investors.”

Some strategies in particular, such as macro strategies and CTAs, can provide downside protection and uncorrelated returns and have demonstrated their worth so far in 2016. Fund managers will be looking to build on February’s performance in order to prove to their investors the value hedge funds can provide on a long-term risk-adjusted basis.” Amy Bensted – Head of Hedge Fund Products, Preqin

What do you think?

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


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Marks delves into what really matters[more]

    B. G., Opalesque Geneva: Howard Marks, co-founder and co-chairman of Oaktree Capital Management, weighs what should and should not matter for investors in his latest memo last week. Among the things t

  2. Legal: British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m, DOL slams lawsuit seeking to overturn crypto guidance[more]

    British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m From Offshore Alert: Four days before a trial was due to start in the Cayman Islands, British fund manager Jeremy Leach and eight of his firms settled a fraud complaint by agreeing to pay $11.5 million o

  3. Family offices upbeat on private assets, reduce public assets exposure[more]

    Laxman Pai, Opalesque Asia: Family offices are investing more in private assets and cutting back on investments in public markets, with higher risk-adjusted returns cited as the main driver, said a study. According to the survey findings by German digital private equity firm Moonfare, and the

  4. Opalesque Exclusive: A Swiss managed futures strategy that can offer diversification to any portfolio[more]

    B. G., Opalesque Geneva for New Managers: TARO (R) Diversified is a Swiss algorithmic and systematic investment strategy that offers diversification benefits to almost any professionally managed portfolio through it

  5. Alts manager Medalist Partners acquires a minority stake in Semper Capital to tap opportunities in structured credit[more]

    Laxman Pai, Opalesque Asia: Medalist Partners, which specializes in private credit, has acquired a minority stake in Semper Capital to extend its offerings to the mass market. Medalist currently manages approximately $2.2 billion in assets across strategies in asset-based private credit, struc