Event driven

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  • Equity hedge strategies led industry performance, with the HFRI Equity Hedge (Total) Index up 2.1 per cent in January led by strong contributions from growth, technology and healthcare sub-strategies.

Equity hedge strategies lead positive hedge fund performance in January

Hedge funds posted strong gains to begin 2017, led by the performance of equity hedge strategies, the largest area of hedge fund industry investor capital, according to data from HFR.
  • Total assets increased by $46.8bn in the last three months of 2016, ending the year at $3.02tn.

Hedge funds end 2016 with largest annual increase since 2014, says HFR data

Despite continuing stories about investor disassatisfaction with performance, hedge funds ended 2016 on an asset high.
  • Investment flows for most of 2016 highlighted elevated dissatisfaction with the industry’s sub-standard 2015 returns.

Hedge funds celebrate outperformance in 2016 despite waning enthusiasm of some investors

Despite some high profile declines, the average hedge fund outperformed an equal weighted equity/fixed income benchmark for the second consecutive year and several segments showed that 2015 might have been an anomaly for the industry.
  • Assets under management in the hedge fund industry fell for the first time since 2008.

Hedge funds end 2016 in positive territory but assets contract by over $20bn

Hedge funds gained 1.01 per cent in December, with full year 2016 returns at 4.48 per cent, according to data from Eurekahedge.
  • Research exposes a variety of issues that are reshaping the way hedge funds conduct business in an increasingly competitive environment.

Smaller hedge funds attracting more investors as over half of the industry reports positive flows

Event driven hedge funds were one of several bright spots in hedge fund asset flow trends in November, according to the latest data from eVestment.
  • The November monthly advance reverses the decline from the prior month, represents the eighth monthly gain in the past nine months  and brings year to date performance to healthy 4.6 per cent.

Hedge fund performance hits highs in November as most strategies look to end year in positive territory

Hedge fund performance improved in November, as the election victory of Donald Trump drove expectations for renewed growth, infrastructure spending and reduced regulation.
  • Redemption pressure in October was the industry’s largest so far this year with 61 per cent of reporting funds estimated to have net outflow during the month.

Hedge funds continue to haemorrhage assets as allocations slow to almost every strategy

Investors redeemed an estimated net $14.2bn from hedge funds in October. Year to date (YTD) there has been a net $77.0bn removed from the industry, according to eVestment data.
  • The negative October performance was the industry’s first aggregate decline since January.

Hedge fund performance edges down in October but YTD brings in positive results

As hedge funds edged down by an average 0.76 per cent in October the industry average year to date (YTD) achieved a positive 3.70 per cent.