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

Up from zero: Hedge fund industry firmly positive YTD with August performance

Tuesday, September 15, 2020
Opalesque Industry Update - The global hedge fund industry continues to climb out of the turmoil created by the Covid-19 pandemic. The industry gained an average of +2.5% in August, bringing the year to date (YTD) average return firmly into positive territory at +2.21%, according to the just-released August eVestment hedge fund performance data. This is a welcome change from the virtually 0% YTD average return (-0.27% to be exact) the industry achieved in July and the several months of challenging returns in the middle of the year.

Almost every major hedge fund type and strategy eVestment tracks put up positive average returns for August and most hedge fund types and strategies are now showing positive average returns for the year, indicating that the industry is regaining its footing following a challenging few months.

Event Driven-Activist hedge fund strategies were among the big performance winners in August, with an average return of +7.88%. These funds now stand at +3.25% YTD, which while positive, is far from the +17.46% average return Event Driven-Activist funds produced in 2019.

Size did not seem to be an advantage in August, according to eVestment's data, as the 10 largest reporting funds' average returns in August and YTD are meaningfully below the industry averages: +0.32% for the 10 largest reporting hedge funds vs. +2.5% for the industry, and -1.21% YTD for the 10 largest hedge funds vs. +2.21% YTD for the industry.

Some other interesting points from the new data include:

• India-focused hedge funds saw a surge in performance in August, resulting in average returns of +6.52% for the month. These funds are still negative for the year, at -2.25%, but are heading in the right direction.

• YTD Convertible Arbitrage funds have produced the best average returns among primary strategies eVestment tracks. These funds had an average return of +2.64% in August and stand at +6.89% YTD. Nearly 90% of Convertible Arbitrage managers are positive for the year with those posting positive returns seeing average gains near 10%.

• Long-Short Equity funds posted strong results in August, at +3.91%. This brings YTD average performance for Long-Short Equity funds to +3.10%, which is a long way from the average return of +14.30% these funds delivered in 2019.

• China-focused hedge funds are having another strong year. The average return for China-focused funds in August was +1.64%, bringing YTD performance to +17.87%. With continued strong results, China-focused hedge funds could be on pace to exceed the average return of +22.56% the group posted in 2019.

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. Investing: Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says, Pandora tops world's best-performing market as hedge funds exit, What Bill Ackman is investing in now[more]

    Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says From Business Insider: Credit Suisse on Thursday trimmed its overweight rating for tech stocks, recommending investors be more selective with their sector picks. Crowding in tech giants and the stocks&#

  2. Investing: Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan, Here's what investors with $3.4tn are buying during covid, An energy trader seeks profit from batteries in European markets, Hedge fund ARCM to sell $200m of Premier Oil debt[more]

    Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan Third Point LLC acquired new stakes in Facebook Inc. and Chinese e-commerce companies Alibaba Group Holding Ltd. and Inc. during the second quarter of 2020 as it divested positions in Sony Corp. and drugmaker

  3. PE/VC: Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise, Aberdeen's Bonaccord teams up with CAZ to buy stakes in private markets managers, The role of private equity in economic recovery from Covid-19[more]

    Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise From Institutional Investor: New research suggests private-equity-owned firms respond differently to financial distress - and that the resulting performance "cannot be replicat

  4. Opalesque TV: Meet a Swiss fund manager who hedges with a difference[more]

    B. G., Opalesque Geneva: There is a quant manager in Zurich that does things a little differently, which has helped a lot so far this year. ICON Asset Management, which was mentioned in the

  5. Franklin Templeton creates new unit with QS Investors[more]

    Laxman Pai, Opalesque Asia: Franklin Templeton will combine recently acquired QS Investors, a Legg Mason subsidiary, with Franklin Templeton Multiasset Solutions (FTMAS) business into a single consolidated unit. Effective Oct. 1, the combined business, called Franklin Templeton Investment Sol