eVestment: Hedge fund industry at a turning point
16 July 2018 London
Image: Shutterstock
The hedge fund industry is producing very mixed results and finds itself at a turning point, according to the latest monthly Hedge Fund Performance Report from eVestment.
Just over half of reporting strategies are positive for the year and those funds that are positive are up an average of 5.3 percent, while those in the red are down an average of 5.3 percent, according to the report.
Overall industry returns were just slightly negative at -0.51 percent in June, while Q2 2018 returns were positive, rising 0.37 percent. Year-to-date 2018 returns increased 0.16 percent.
In many cases, what had been doing well in 2017 has under performed in 2018, while in other cases the opposite is true, said eVestment.
It added: “This is not a situation which inspires confidence, but we must also remind ourselves to not focus on the short term.”
Macro strategies were a leading asset gaining group in 2017 and at the top in 2018, and negative aggregate returns in 2018 seemed to imply dissatisfied investors.
Aggregate returns from the largest managed futures products were among the best subsets of the industry in June.
Average losses of 3.78 percent in the first half, however, keep the group behind all other non-emerging market focused segments in the industry in 2018.
A strong dollar and developing trade wars have been hurting emerging markets funds, eVestment found.
In June, China-focused funds fell most, returning -4.69 percent. China fund losses were nearly rivalled by losses at funds focused on India and Brazil, which also saw negative returns.
However, India-focused funds, down -12.28 percent for the year, are seeing the largest losses so far in 2018.
Just over half of reporting strategies are positive for the year and those funds that are positive are up an average of 5.3 percent, while those in the red are down an average of 5.3 percent, according to the report.
Overall industry returns were just slightly negative at -0.51 percent in June, while Q2 2018 returns were positive, rising 0.37 percent. Year-to-date 2018 returns increased 0.16 percent.
In many cases, what had been doing well in 2017 has under performed in 2018, while in other cases the opposite is true, said eVestment.
It added: “This is not a situation which inspires confidence, but we must also remind ourselves to not focus on the short term.”
Macro strategies were a leading asset gaining group in 2017 and at the top in 2018, and negative aggregate returns in 2018 seemed to imply dissatisfied investors.
Aggregate returns from the largest managed futures products were among the best subsets of the industry in June.
Average losses of 3.78 percent in the first half, however, keep the group behind all other non-emerging market focused segments in the industry in 2018.
A strong dollar and developing trade wars have been hurting emerging markets funds, eVestment found.
In June, China-focused funds fell most, returning -4.69 percent. China fund losses were nearly rivalled by losses at funds focused on India and Brazil, which also saw negative returns.
However, India-focused funds, down -12.28 percent for the year, are seeing the largest losses so far in 2018.
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