Friday, 22 August 2014
Last updated 1 hour ago
Jan 11 2012 | 1:33pm ET
Hedge funds ended the year down 4.5% in 2011, according to research from eVestment|HFN.
The drop constitutes only the second year the HFN Hedge Fund Aggregate Index has been negative—and makes 2011 the second-worst year ever for hedge funds, after 2008.
That said, eVestmenHFN’s year-end report on the industry shows hedge fund AUM up by a moderate $3.7 billion over 2010, to $2.48 trillion. The increase was driven primarily by investor allocations.
The first half of the year saw a net increase in AUM of $73.6 billion, while the second half saw a net reduction of $38.7 billion.
Preliminary results for December suggest investor flows were again negative, making it the fourth straight month of net investor redemptions.
Measured by asset-weighted returns, the industry lost 1.2%, indicating larger funds outperformed their smaller rivals in 2011.
eVestment|HFN divides the hedge fund universe into winners and losers for 2011.
Among the winners were mortgage strategies (up 11.3% for the year); fixed income/credit strategies (up 3.8%, with funds specializing in munis and sovereign credit doing even better, at 4.1%); merger arbitrage (up 3.1%); healthcare sector funds (up 3.2%); and large multi-strategy funds (on an asset-weighted basis, up 2.2%).
Last year’s losers (or “laggards” in eVestment|HFN’s parlance) included long/short equity (down 6.52%, underperforming the S&P 500 TR Index by the largest margin since 1998); emerging markets equity (down 14.9%, in contrast to EM debt strategies which generally performed well in 2011); commodity strategies and CTA/managed futures (down 3.92%, and the asset-weighted performance was even worse, at negative 5.4%, indicating larger funds performed slightly worse); and UCITS structured hedge funds (down 8.38%).
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note