Preqin: Hedge Funds Gain +4.87% Through June, Notch Best First Half Since 2009

Jul 18 2017 | 10:32pm ET

Hedge funds booked their eighth consecutive month of positive performance in June, according to new data from Preqin, surpassing the seven-month stretch between March and September of last year.

Preqin’s All-Strategies Hedge Fund benchmark gained 0.57% in June, the company said in a statement, and notched a 4.87% gain for the first half of 2017. The first-half result is the highest H1 performance since 2009’s +16.94%, and is also the first time since 2007 in which each the first six months of the year have recorded positive returns. 

Key details from Preqin’s June Performance Report

  • Equity strategies funds gained 0.91% through the month, the highest of any leading strategy, taking 12-month performance to 13.62%. Macro strategies 
funds saw losses of 0.44%, the only leading strategy to lose ground in June. Event driven strategies made gains of 0.48%, but have the highest 12-month returns at 14.11%.
  • Discretionary funds continued to outperform systematic vehicles, with returns of 0.95% and -0.22% respectively in June. 12-month returns for discretionary funds are now 13.28%, more than double that of systematic funds (+6.20%). 

  • Asia-Pacific hedge funds returned 1.53% in June, higher than either North America (+0.59%) or Europe (+0.20%) funds. 

  • Funds of hedge funds marked gains of 0.06%, continuing a run of eight positive performance months. Overall returns for 2017 YTD now stand at 2.14%. 

  • UCITS funds gained 0.05% through the month, while alternative mutual funds returned 0.24%. 12-month returns for these fund types now stand at 6.42% and 4.12% respectively. 

  • CTAs recorded losses of 1.04% in June, bringing performance in H1 2017 to -0.57%. However, discretionary CTAs have made gains of 1.94% through the year so far, while systematic CTAs have returned -0.78%. 

“Despite negative investor sentiment at the start of the year, the hedge fund industry has recorded one of its strongest H1 performance periods since the global financial crisis,” said Amy Bensted, head of hedge fund products for Preqin, in the statement. “Although we have not seen large monthly gains, consistent performance has bolstered the asset class’ returns, and 12-month performance is now in double digits. 

“The gap between the performance of discretionary and systematic funds continues to widen,” Bensted added. “Over the past 12 months, discretionary funds have now made twice the gains seen by systematic vehicles. Continued investment themes globally – including a more hawkish attitude from central banks, as well as more settled markets in Europe and Asia – have allowed discretionary fund managers to pull ahead of their systematic counterparts.” 

Founded in 2003, Preqin is a leading source of information for the alternative assets industry, providing data and analysis via online databases, publications and bespoke data requests. The company's Hedge Fund Online service is a leading source of intelligence on the hedge fund industry, with performance information for over 16,000 hedge funds across strategies and geographies. More than 47,000 professionals in 90 nations use the company’s products. 

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