Hedge Funds Post their Highest Returns Since 2010

0
Hedge Funds Post their Highest Returns Since 2010

According to Preqin’s Hedge Fund Analyst, hedge funds made gains of 11.08% for the 12-month period ending 31 December 2013, ahead of the 10.13% returned in 2012, and the benchmark loss of -1.93% in 2011. Investors are largely satisfied with the performance in 2013; eighty-four percent of investors interviewed for the 2014 Preqin Global Hedge Fund Report stated that returns expectations had been met or exceeded in 2013.

Play Quizzes 4

Hedge funds: Other key facts

  • 21% of investors stated returns expectations had been exceeded, the highest level since Preqin started collecting this data in 2008.
  • Macro strategies had the worst returns, adding just 2.42% in 2013.
  • CTA funds made gains of only 0.08% in 2013, taking three-year annualized returns to 0.85%.
  • Funds of funds posted their highest net returns since 2009, gaining 7.72% in 2013.
  • January was the best month throughout 2013 for hedge fund performance, with net returns of 2.44%.
  • The hedge fund benchmark was in the red for two months in 2013 – down 1.53% in June and 0.14% in August.
  • Relative value funds made gains of 7.14% in 2013, and have the lowest three-year volatility of any hedge fund strategy at 1.58%.
  • Top quartile funds accumulated returns of nearly 30%.
  • Emerging market funds performed poorly compared to counterparts targeting global and developed markets and in contrast to 2012; emerging market funds posted returns of 5.86% in 2013, compared to gains of more than 12% in 2012.
  • Asia-Pacific-focused funds made gains of 16.73% in 2013, followed by North America funds (16.55%) and Europe funds (13.55%).

Comment:

“Much of the recent criticism faced by hedge funds has focused on hedge fund benchmarks being outperformed by leading equity indices, such as the S&P 500. In 2013, the Preqin Hedge Fund Index, a benchmark of average hedge fund returns, again lagged the S&P 500; however, despite this, investors are satisfied with the performance of hedge funds in 2013. Investors are now looking beyond absolute returns; they are also looking for funds to produce strong risk-adjusted returns with low volatility on a consistent basis. The performance of hedge funds over 2012 and 2013 has certainly delivered this. Event driven and long/short funds led the way in terms of performance, with CTA funds producing disappointing returns for the third year in a row. Emerging market funds were unable to sustain the performance into 2013, posting just 5.86% compared to the 12.62% returned in 2012. However, Asia-Pacific focused funds had another strong year, up 16.73%, making it the top performing region in 2013.”

London Value Investor Conference 2022: Chris Hohn On Making Money And Saving The World

business activist 1653311320Chris Hohn the founder and manager of TCI Fund Management was the star speaker at this year's London Value Investor Conference, which took place on May 19th. The investor has earned himself a reputation for being one of the world's most successful hedge fund managers over the past few decades. TCI, which stands for The Read More

Updated on

Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)valuewalk.com
Previous article Shareholder Activism In 2013 – And The Top Ten Activists
Next article Emerging Market Risk Decouples From Global PMI

No posts to display