Mon, Jun 1, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund industry starts 2020 in the red, but just Barely

Wednesday, February 12, 2020
Opalesque Industry Update - Aggregate hedge fund performance started out 2020 in the red, but just barely, with the industry posting an overall loss of -0.22%, according to the just-released eVestment January 2020 hedge fund performance data. The hedge fund industry closed out 2019 with average return of +9.69%, according to eVestment.

Managed Futures funds were the best performing primary strategy to start 2020, turning in average performance of +1.83% in January. Returns within the group were mostly positive (67% positive), but there were a wide distribution of positive/negative returns among the largest managers. As a result, the 10 largest Managed Futures managers only returned an average of +0.21%.

While January was generally a good start for the Managed Futures segment of the industry, as a group Managed Futures funds need to prove themselves to investors following a few years of volatile returns. These funds closed out 2019 at +7.61%, but were in the red for 2018, returning -6.09%.

Among primary strategies tracked by eVestment, Event Driven - Activist funds were the biggest performance losers, with these funds posting an average return of -1.45% for January. These funds closed out 2019 at +13.38%, which placed them among the strongest performing primary strategies last year.

Long/Short Equity funds also had a difficult start to 2020, returning an average of -1.02% in January. Is there a theme here? Long/Short Equity funds were also among the strongest performing fund segments in 2019, closing last year at +14.16%.

Japan-focused funds saw the most negative returns in January of all fund types eVestment tracks, posting -3.27% returns to start off the year.

India-focused funds started the year on a positive note, posting average returns of +1.10% in January. India-focused funds' positive January returns are a nice start for these funds, which have been in the red the past two years. In 2019 India-focused funds returned -3.14% and in 2018 India-focused funds returned shocking -16.23%.

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. Tiger Global tops the list US-based venture capital market[more]

    Laxman Pai, Opalesque Asia: Tiger Global Management holds on to its position as market-leader in US-based venture capital, said a study. According to Preqin, the closure of tech-focused Tiger Global Private Investment Partners XII in January means the New York-based firm has raised more than

  2. Study: Emerging market bond issuers take hit as global recession deepens, The coronavirus pandemic could cost the global economy a nightmarish $82tn over 5 years, a Cambridge study warns[more]

    Emerging market bond issuers take hit as global recession deepens Increasing credit stress evident amongst many high-yield EM non-financial corporates as coronavirus disruption takes its toll, says Moody's. 74 out of 106 rated EM sovereigns have a stable outlook as of 30 April 2020 (compa

  3. Investing: Singer bets on Europe, emerging markets, Britain's unhealthy appetite for financial risk in essential services, How Stan Druckenmiller shook up his portfolio[more]

    Singer bets on Europe, emerging markets From Investment Magazine: William Blair's Brian Singer is looking to invest in Europe and the emerging markets as the recovery from the global economic shutdown to contain the pandemic will likely take longer than what the market has priced in.

  4. PE/VC: How Covid-19 could reshape private equity fundraising, The private equity bet that coronavirus cut short[more]

    How Covid-19 could reshape private equity fundraising From Asian Investor: The pandemic looks may have led to greater use of remote capital-raising but might it also encourage investors to establish more overseas offices? The coronavirus outbreak has inevitably hit the amount of mo

  5. Investing: Millennium hedge fund ups bet against Bank of Ireland, Value rotation was the last thing big funds thought would happen, Al Gore's firm sold Amazon and Microsoft stock. Here's what it bought.[more]

    Millennium hedge fund ups bet against Bank of Ireland From Independent: US hedge fund Millennium International Management has raised its bet against Bank of Ireland's shares. It comes as Davy says 2020 will be a write-off for banks, with losses across Irish lenders of €4bn. M