Sun, Apr 11, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund performance picks in 2Q, with Event Driven-Activist funds dominating

Monday, July 13, 2020
Opalesque Industry Update - Hedge funds gained an average of +2.07% in June, but year-to-date (YTD) average industry returns are still in the red at -3.37%. The second quarter was stronger for the industry, with 2Q 2020 average returns at +9.91%.

Roughly 40% of the industry is producing positive results in 2020, with the average positive gain among that group of +9.12%. The average decline of those funds in the red is -10.85%.

Among primary strategies eVestment tracks, a strong story is developing with Event Driven - Activist funds. Average positive returns among this group of funds stood at +4.71% in June and caps off a strong three months of performance that has these funds with an average performance of +22.58% for Q2 2020. Event Driven - Activist Funds are still in the red YTD at -6.44% following a volatile first quarter.

Hedge funds focused on India and China performed well in June, at +8.92% and +7.36%, respectively. India funds are still digging out from a tough first quarter, with YTD returns standing at -12.48%, while China-focused funds are in the green YTD at +8.34%. Brazil-focused funds are also in the green with average returns of +5.89% in June, but are digging out from an even bigger hole than India-focused funds YTD, with results for the year at -24.12% for Brazil-focused funds.

Size has not proven to be an advantage for hedge funds so far this year. The 10 largest funds reporting to eVestment had an average return in June that was significantly below the industry average for the month (-0.70% vs. +2.07%), and YTD returns for the group also lag the broad industry (-5.75% vs. -3.37%).

From these largest managers, there is a wide dispersion of returns. Seven are down an average of -14.03% for the year, while the three that are positive are each up over 6%, with two producing noticeably outsized gains. Given the size of these products, a broad swath of investors are likely feeling dissatisfied with their hedge fund allocations this year.

Among the primary strategies eVestment tracks, Managed Futures funds were the only ones in the red for the month, with average performance of -0.26%. These funds are also in negative territory YTD, but just barely at -1.58%.

Most of the fund types eVestment tracks saw positive average returns in June and for Q2 2020, but are still in negative territory for average returns YTD. The performance numbers so far this year show an industry that was thrown off base just as badly as the rest of the world by the COVID-19 pandemic at the beginning of the year, but that seems to be gaining traction and re-establishing its footing as the world, and investment professionals, adjust to the new normal.

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. SPACs: Investors sour on SPACs, Hong Kong is set to target first SPAC listing by end of year, How the American SPACs rocket has failed to take off in Europe, UK car seller Cazoo agrees to go public on NYSE through Och-backed SPAC, The SPAC boom is losing steam[more]

    Investors sour on SPACs From Institutional Investor: Is the blank-check bubble bursting?Shares of many special purpose acquisition companies are down 20 percent or more from the highs they hit in February. Many of them are blank-check companies that have announced merger partners but h

  2. PE/VC: Sixth Street, Owl Rock, and Dyal's dirty laundry spills into the open, Investors flock to European e-commerce start-ups hoping to take on Amazon, Private equity champion mocks Oxford academic over criticism[more]

    Sixth Street, Owl Rock, and Dyal's dirty laundry spills into the open From Institutional Investor: A battle by Sixth Street Partners to stop a landmark $12 billion deal to combine Owl Rock Capital Partners with Dyal Capital Partners continued with a vengeance this week, providing more

  3. New Launches: Atlas Holdings closes fourth PE fund at $3.1bn, Zigg Capital nabs $225m to invest in proptech startups, Canvas Ventures raises $350m to help bring intentionality back to early-stage investing, BlackRock and Fidelity launch first green bond ETFs[more]

    Atlas Holdings closes fourth PE fund at $3.1bn From PE Insights: Atlas Holdings has held the first and final close of its fourth private equity investment fund, Atlas Capital Resources IV LP (ACR IV) at its hard cap of $3.1 billion. The latest fundraising, which began in Novembe

  4. SPACs: UK stock market to lure SPACs with rules overhaul, Nuvation Bio flounders after EcoR1 SPAC merger, Singapore Exchange may launch regulatory framework for SPACs by mid-2021, SPAC listings slow to a crawl with bankers buried in paperwork[more]

    UK stock market to lure SPACs with rules overhaul From Yahoo Finance: Britain's financial watchdog has fired the starting gun on plans to overhaul stock market rules in a bid to lure more SPACs to the London market. The Financial Conduct Authority (FCA) on Wednesday said it woul

  5. New Launches: Amundi launches Just Transition for Climate fund, Index Ventures launches $200m seed fund, China's Hosen Capital hits $800m hard cap for third US dollar fundraise, Shackleton launches fifth venture secondaries fund[more]

    Amundi launches Just Transition for Climate fund From Bloomberg: Amundi has launched a European fixed income fund that will support energy transition. The Just Transition for Climate fund is managed by Alban de Fa?, head of fixed income ESG investing, and Dany da Fonseca, credit portfo