Fri, Jan 21, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Vast majority of hedge funds see positive returns in August, India-focused funds lead the business

Monday, September 13, 2021
Opalesque Industry Update - The aggregate return for the global hedge fund business was +0.77% in August, a return to positive territory following a dip into the red in July, according to the just-released eVestment August hedge fund performance data.

The vast majority of mangers reporting to eVestment (67.4%) had positive returns last month, the best level in three months. August gains brought the year-to-date hedge fund industry aggregate return to +9.53%.

"August hedge fund performance was interesting for its relative low dispersion of returns," said eVestment Global Head of Research Peter Laurelli. "The average of the positive return during the month was not great, +1.97%, the second lowest level of 2021, but the average loss was not tremendous either at -1.79%. The differential between average gains and average losses is the narrowest in over two years, since July 2019."

Drilling down into primary hedge fund markets and strategies eVestment tracks, Laurelli notes that "Managed Futures funds are an area we're keeping an eye on as net asset flows to these funds have been surprisingly positive this year and resulting returns will most likely dictate if this positive theme continues. While average returns for Managed Futures funds of -0.31% in August may seem relatively poor, the largest managers performed very differently, returning an average gain of +0.93%. An average YTD return for the 10 largest reporting Managed Futures products of +11.49% for the year so far is the kind of positive news this segment needs."

• Funds focused on India continue to be among the strongest performers, with aggregate returns of +5.50% in August. These funds' +41.43% YTD returns have them leading the entire hedge fund business.

• While Event Driven - Activist fund aggregate returns in August were only +0.60%, these funds are another YTD performance winner, with aggregate returns for the year at +24.00%.

• Equity funds saw aggregate returns of +1.03% in August and are at +11.97% YTD. Looking at Equity fund sub-sectors eVestment tracks, Equity - Technology funds were performance winners among this group in August at +1.57% while Equity - Financials and Equity - Energy funds are YTD performance winners, with both posting aggregate returns for the year of nearly +19% (+18.83% and +18.69% YTD respectively).

• Among primary strategies eVestment tracks, Origination & Financing funds were among the biggest performance losers at -2.48% in August. These funds' performance is especially interesting given the overall positive return environment for the hedge fund business in August and so far this year. These funds are still positive YTD, however, at +4.74%.

• Hedge funds domiciled in Japan came on strong in August, returning +5.48%. Japan-domiciled funds are at only +2.87% for YTD returns. Hedge funds focused on Japan also saw strong returns in August, at +4.01%.

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: Mobile commerce platform Rezolve to go public via $2bn SPAC deal, Malaysia's securities regulator cuts minimum fundraising for SPAC IPOs, raises price, Travel technology firm Mondee nears $1bn SPAC deal to go public, Italy's Zegna to start trading on NYSE from Dec. 20 after SPAC merger, New SPAC raises $230m to target real estate or mortgage fintech[more]

    Mobile commerce platform Rezolve to go public via $2bn SPAC deal From Reuters: Mobile commerce platform Rezolve said on Friday it will list in New York through a merger with a blank-check firm backed by billionaire Betsy Cohen, in a deal valuing the combined company at about $2 billion

  2. Tech: AI argues for and against itself in Oxford Union debate, 15% of Dutch pension funds fall victim to cyber crime, The fight to control the metaverse: Crypto die-hards prepare for battle with Facebook and Big Tech[more]

    AI argues for and against itself in Oxford Union debate From BBC: The Oxford Union has heard from many great debaters over the years, but this week added an artificial intelligence engine to its distinguished speakers. The AI argued that the only way to stop such tech becoming to

  3. PE/VC: SOKA-BAU to raise private markets allocation with first move in private debt, Biotech deals tumble to lowest in a decade over regulatory fears[more]

    SOKA-BAU to raise private markets allocation with first move in private debt From IPE: SOKA-BAU, the German umbrella organisation of the two pension funds for the employees in the construction industry ULAK and ZVK, is targeting an allocation to private markets of 15%, up from the curr

  4. New Launches: Goldman collects $5bn for Petershill IV, OSF Ventures launches third and largest venture capital fund, London growth investor Sprints Capital raises $602m for new technology fund, BlackRock launches two new active Climate Action funds, Edtech-focused Owl Ventures raises over $1bn across three funds[more]

    Goldman collects $5bn for Petershill IV From PE News: Goldman Sachs Asset Management has made a final close of its Petershill IV fund, the fourth vintage of its GP stakes growth-focused private equity funds. The firm said the fund had been oversubscribed with commitments mostly c

  5. PE/VC: A record year in private equity drives competition for lucrative industries, The power law - how venture capital ate the stock market, Europe's unicorn herd multiplies as VC investment more than doubled in 2021, Platform private equity deals could be 'fraught with risk'[more]

    A record year in private equity drives competition for lucrative industries From Institutional Investor: With more private equity capital available than ever before, valuations are high - and competition is even higher. According to PitchBook's 2021 annual PE breakdown report, which wa