• 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.
  • 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.
  • Rising market uncertainty resulted in a divergence between top hedge funds and smaller firms.

Mixed performance by hedge funds in October as managers enter uncertainty of fourth quarter

Hedge funds posted mixed performance in October, as US equities, according to Hedge Fund Research (HFR) data.
  • The third quarter hedge fund asset level topped the previous record of $2.969tn set in the second quarter of 2015.

Hedge fund assets hit high as inflows in third quarter rise

Total hedge fund industry assets under management rose to a record level in third quarter, as performance gains offset continued asset outflows concentrated in many of the industry’s largest and most well established managers.
  • Outflows were highest among credit, multi-strategy and event driven funds.

Redemption pressure on hedge funds continues

Investors continue to express dissatisfaction with hedge fund performance by removing an estimated $25.2bn in July, bringing year to date (YTD) net flows to negative $55.9bn, according to eVestment data.