Sun, Jun 26, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds suffer in volatile market, but outpace other benchmarks, offer bright spots

Thursday, May 12, 2022
Opalesque Industry Update - April was a difficult month in the investment/financial markets, and the global hedge fund business was no exception, with the aggregate industry return at -1.68% for the month, dragging year to date (YTD) returns further into the red at -2.59%, according to the just-released April 2022 eVestment hedge fund performance data. But on the bright side, the hedge fund business still performed better than many other industry benchmarks (see chart below) and among those funds that did perform well, some performed exceptionally well.

The average return of -1.68% is a result of just 36% of the funds eVestment tracks producing positive results in April and the difference between average gain (+3.7%) and average loss (-4.7%) was the largest in 17 months.

"In spite of overall disappointing numbers for the hedge fund business this year, there are bright spots among the major fund types and strategies eVestment tracks and within those categories as well," said eVestment Global Head of Research Peter Laurelli. "Times like these highlight the importance of hedge funds in a balanced portfolio and the role of solid due diligence when considering which type of funds and which individual funds in which to invest."

Managed Futures funds followed one of their best monthly returns on record in March with another strategy-leading return of +3.73% in April. The universe's average 2022 YTD return of +13.55% is now more than two times the next best performing strategy (Macro, +6.60%). The largest products in the space have continued to outperform as well. The 10 largest reporting managed futures strategies had an aggregate return of +4.97% in April and are now at +16.10% YTD.

As noted, Macro funds are also performing well so far this year, with April aggregate returns for these funds standing at +2.08% and YTD returns at +6.60%. The 10 largest Macro funds however are lagging the full strategy segment, with these largest funds seeing aggregate returns in April of +1.20% and YTD returns at +2.56%.

The only other primary strategy in the green for both April and YTD, behind Managed Futures and Macro funds, were Distressed funds. These funds managed to eke out a +0.13% aggregate return in April and have returns of +0.56% YTD.

Among primary hedge fund markets eVestment tracks, Equity-focused funds were the big performance losers in April, with aggregate returns of -3.99% in April and YTD returns at -7.79%. This is a sharp turnaround from a streak of double-digit positive returns Equity funds enjoyed from 2019 to 2020.

The challenges in Equity markets filtered down to Equity-focused strategies as well. With aggregate returns of -4.87% in April and -5.87% YTD, Event Drive-Activist funds are among the worst performing primary hedge fund strategies eVestment tracks. Long/Short Equity funds are also performing poorly, at -4.31% in April and -7.42% YTD. Funds focused on Equity sub-sectors Financials, Energy, Healthcare and Technology were also in the red to one degree or another in April and YTD.

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. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  2. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  3. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm

  4. Other Voices: The selloff is overdone[more]

    Authored by Heeten Doshi, founder of Doshi Capital Management. Anyone who is still bearish and calling for more downside is foolish. The selloff is overdone. To point to further declines from here is poor risk management. With the Nasdaq 100 down 22% and S&P 500 down 13% for the year

  5. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve