Thursday, 31 July 2014
Last updated 8 hours ago
Apr 25 2013 | 10:58am ET
Long/short strategies were the best-performing hedge funds in the first quarter of 2013, with cumulative net returns of 4.43%, according to the latest data from Preqin.
The strategy was also popular with institutional investors, 43% of whom planned to invest in long/short funds in the next 12 months.
Those investors will have some new long/short funds to choose from—58% of all hedge fund launches in Q1 2013 were long/short strategies.
Macro funds returned only 1.17% in the first quarter and accounted for only 14% of fund launches, down from 32% in the last quarter of 2012.
CTAs were the worst-performing hedge funds in Q1 with net returns of 0.21%; investor appetite for this strategy also fell, with CTAs representing 17% of investor searches compared to 25% in Q2 2012.
Event-driven strategies posted the highest rate of cumulative returns over the last 12 months, at 9.44%, and accounted for 11% of hedge funds launched in Q1. On the other hand, investor appetite for event-driven funds declined to 18% of searches from 27% in Q2 2012.
More than a quarter (28%) of fund launches in Q1 were first-time managers while the bulk (81%) were North-American base. European launches accounted for just 12% of the Q1 total.
Interest in UCITS-compliants funds was also up, with 14% of investor searches including a UCITS component compared to 7% in 2012.
Funds of hedge funds posted their highest net quarterly returns (3.16%) since Q1 2012. Single-manager hedge funds returned 3.35% in Q1 2013.
“Liquid strategies trading on equities, notably long/short equity, are increasingly being sought by institutional investors looking to take advantage of the current market rally,” said Amy Bensted of Preqin in a statement. “As Preqin’s fund launch data demonstrates, long/short strategies represent well over half of known hedge fund launches in the first quarter of 2013; therefore investors targeting this strategy will have a wide choice of funds, both established and emerging, to fill these open mandates.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…