Hedge Funds’ YTD Performance By Strategy: HSBC

The 48th Hedge Weekly incorporating Investment Funds Performance Review by the HSBC Alternative Investment Group for the week ended November 29, 2013, presents a wealth of data on how funds performed in 2013 up to the date analyzed by strategy.

Hedge Funds’ YTD Performance By Strategy: HSBC

Average returns by strategy as per the report have been shown below in descending order of performance.

Fund Type Fund Category 2013 YTD Returns %
Equity-Energy Equity Long/Short 32.75  *
Equity-Pharma-Biotech Equity Long/Short 22.66
Equity-Healthcare Equity Long/Short 21.55
Equity-Diversified Event Driven 20.87
Multi-Strategy Event Driven 20.05  **
Credit Multi-Strategy 16.65
Commodity Managed Futures 15.16
Equity-Diversified Equity Long/Short 15.02
Equity-Mid-Small Cap Equity Long/Short 14.7
Equity-Financial Equity Long/Short 13.83
Equity-Real Estate Equity Long/Short 13.73
Equity-Commodity Equity Long/Short 13.29
Distressed Distressed 11.97
Trading Fund of Funds 9.94
Equity Diversified Market Neutral 9.22
Diversified Multi-Strategy 8.89
Credit Long/Short Credit Long/Short 8.68
Event Driven Fund of Funds 8.16
Discretionary Market Neutral 7.87
Macro Fund of Funds 7.86
Convertible Arbitrage Convertible Arbitrage 7.85
Merger-Arbitrage Merger-Arbitrage 7.68
Long/Short Fund of Funds 7.21
Systematic Market Neutral 7.17
Multi-Strategy Fund of Funds 6.31
Diversified Macro 6.3
Equity-Technology Equity Long/Short 4.86
Multi-Strategy Market Neutral 4.58
Arbitrage Fund of Funds 4.43
Equity-Diversified Long Only 4.24
Commodity Macro 3.82
Fixed Income Arbitrage Fixed Income Arbitrage 3.52
Equity-Utility Equity Long/Short 3.21
Statistical Arbitrage Market Neutral 2.03
Arbitrage Volatility Arbitrage 1.22
Systematic Managed Futures 0.51
Currency Macro -1.59
Fixed Income Macro -4.38
Commodity-Systematic Macro -10.15
Systematic Macro -11.16
Currency Managed Futures -15.62

Hedge funds appear to be underperforming

It appears that hedge funds have underperformed the major market indices.

It’s also clear that within hedge funds, equity based funds are clustered at the top of the table, which is not surprising considering the stellar returns witnessed in the US, Europe and Japan.

The strategies showing negative returns are the Macros. Managed futures have a mixed performance appearing both at the top of the pecking order as well as the bottom.

Funds of note

Two funds of note have been marked with asterisks against their category:

*DORSET ENERGY FUND, LTD – CLASS A managed by David M. Knott, Donald Textor had assets of $271M and earned YTD returns of 32.75%. Its objectives are Investing Long / Short in energy and energy-related companies. Emphasis on established companies with a focus on North American exploration and production companies (E&P).

**SFP VALUE REALIZATION FUND managed by Greg McEntyre had $251M assets and earned YTD returns of 66.14%. It is a Tokyo-based hedge fund run by SFP that exploits market inefficiencies by investing in undervalued Japanese companies and implementing changes leading to share price appreciation over a two to four-year period.