Hedge Funds Up 7.32% As Emerging Markets Soar

Jan 11 2013 | 1:17pm ET

Hedge funds returned 7.32% last year, according to eVestment.

The company's Hedge Fund Aggregate rose 1.47% last month as 71% of the funds it tracks turned in a positive December. For the year, 68% of the index's constituents were up, but few managed to top the broader markets in a year that saw the Standard & Poor's 500 Index rise 16%.

India-focused strategies were as likely as any to do so: The average India hedge fund rose an impressive 20.54% (0.97% in Dec.). Other emerging markets strategies also outperformed. Emerging markets funds in general were up an average of 16.84% (4.73% in Dec.), China funds 14.13% (after an amazing 10.44% surge in December) and Brazil funds 12.84% (2.02% in Dec.).

Mortgage strategies were not far behind Indian ones: The average mortgage hedge fund skyrocketed 18.66% last year (0.75% in Dec.). Healthcare hedge funds added 16.58% (0.99% in Dec.), financials funds 15.59% (2/72% in Dec.), volatility and options funds 12.88% (0.78% in Dec.), credit funds 12.15% (1.29% in Dec.) and small- and micro-cap funds 10.22% (2.1% in Dec.).

Only three strategies lost ground last year: technology, which fell 2.14%, all of it in December, when it lost 3.01%; commodities, which fell 2.09% (down 1.24% in Dec.); and managed futures, which fell 0.71% (up 0.46% in Dec.). In addition, energy and equity market neutral funds posted losses in December, falling 0.83% and 0.03%, respectively. Both were up on the year, 0.92% and 3.04%, respectively.

As usual, the largest hedge funds lagged behind their smaller peers. Hedge funds with more than $1 billion in assets returned an average 6.83% in 2012. Mid-sized funds actually did best on the year, up 7.89%, while small funds, those with less than $250 million, rose an average of 7.28%.

eVestment also reported flows into the industry through November. In the first 11 months of last year, hedge funds took in $36.25 billion, increasing the industry's size to $2.58 trillion.  Most of that money went to American or global hedge funds, as investors pulled money from European and Asian strategies. Credit funds also benefitted, taking in $57 billion in new money, while equity strategies saw $20.11 billion in outflows.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.