Hedge funds weather US/EU slowdown in May
20 June 2017 London
Image: Shutterstock
Hedge funds managed to shake off the economic slowdown in the US and Europe to maintain their win streak in May, but weren’t completely immune to global events.
The Preqin All-Strategies Hedge Fund benchmark showed the lowest monthly returns so far in 2017 with 0.26 percent recorded in May, but the overall year-to-date performance remains at a healthy 4.37 percent.
Multi-strategy and event driven strategies hedge funds posted the highest performance, with gains of 1.4 percent and 0.51 percent respectively, according to Preqin.
UCITS funds saw gains of 0.43 percent in May, meaning gains for the year so far stand at 3.43 percent.
Alternative mutual funds saw marginal losses of 0.04 percent, bring their yearly gains to 1.92 percent.
By region, North America-focused hedge funds posted losses of 0.22 percent last month, but boast returns of 11.44 percent over the past 12 months, the highest of any region.
Europe- and Asia-Pacific-focused funds both made gains of 1.08 percent.
Amy Bensted, head of hedge fund products at Preqin, said: “Hedge fund performance has continued to make ground in May, despite some concerns about slowing growth in the US and Europe. There have only been three months since the start of 2016 in which hedge funds saw losses, and this should bolster investor confidence in the asset class.”
“At the end of H1 2016, hedge fund investors reported that they did not broadly expect hedge fund performance to improve in the next 12 months. However, since then the industry performance has reached double figures for the period.”
The Preqin All-Strategies Hedge Fund benchmark showed the lowest monthly returns so far in 2017 with 0.26 percent recorded in May, but the overall year-to-date performance remains at a healthy 4.37 percent.
Multi-strategy and event driven strategies hedge funds posted the highest performance, with gains of 1.4 percent and 0.51 percent respectively, according to Preqin.
UCITS funds saw gains of 0.43 percent in May, meaning gains for the year so far stand at 3.43 percent.
Alternative mutual funds saw marginal losses of 0.04 percent, bring their yearly gains to 1.92 percent.
By region, North America-focused hedge funds posted losses of 0.22 percent last month, but boast returns of 11.44 percent over the past 12 months, the highest of any region.
Europe- and Asia-Pacific-focused funds both made gains of 1.08 percent.
Amy Bensted, head of hedge fund products at Preqin, said: “Hedge fund performance has continued to make ground in May, despite some concerns about slowing growth in the US and Europe. There have only been three months since the start of 2016 in which hedge funds saw losses, and this should bolster investor confidence in the asset class.”
“At the end of H1 2016, hedge fund investors reported that they did not broadly expect hedge fund performance to improve in the next 12 months. However, since then the industry performance has reached double figures for the period.”
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