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:
Comment: “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 |
Industry Updates
Preqin: hedge funds post mixed results in February
Monday, March 14, 2016
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