Hedge Funds Post Worst Monthly Return Since May 2012

Hedge Funds Post Worst Monthly Return Since May 2012

Hedge Funds Post Worst Monthly Return Since May 2012 by Preqin

Losses of 2.60% in January sees hedge funds slip to -0.84% for the 12 month period ending 31st January.

Hedge funds returned -2.60% in January as the asset class recorded its worst monthly performance since 2012, with macro hedge funds the only top-level strategy to post positive returns at 0.98%. In a month when leading equity indices posted significant losses — the S&P 500 posted -5.07% and MSCI World posted -6.05% — hedge funds pursuing equity strategies returned -4.28%.

Choice Equities Fund March 2021 Performance Update

Choice Equities FundChoice Equities Fund generated a net return of 29.2% for the 1Q 2021 resulting in annualized returns of 31.7% per year since inception of January 2017. Q1 2021 hedge fund letters, conferences and more Choice Equities Fund, LP Overview Choice Equities Fund (“CEF” or the “Fund”) is an investment partnership that seeks to generate market-beating Read More

By contrast, CTAs started 2016 with returns of 1.38%, their best monthly performance since they made gains of 3.75% in January 2015. Funds of CTAs posted negative returns in 2015 of -6.77%; however these funds recorded the highest return (+3.85%) of any fund type in January 2016.

Hedge Funds – Other Key Performance Statistics:

  • All Fund Sizes Negative: No leading fund size benchmark* emerged from January in positive figures but emerging fund sizes (less than $100mn) provided the best hedging, albeit with losses of 2.51%. Medium hedge funds ($500-999mn) fell by 3.05% and large hedge funds ($1bn+) by 2.87%.
  • Volatility Hedge Funds Limit Damage: Following losses of 1.02% in December, volatility hedge funds returned -0.13% in January. This was a small loss compared to other hedge fund trading styles, especially in contrast to many other fund types and traditional markets, and their 12-month gains remain strong at 5.33%.
  • Emerging Markets Slump: January saw emerging markets hedge funds lose 3.15% for the month and sink into negative figures for 12-month returns (-1.38%). In contrast, developed markets funds saw gains of 0.48% up from -0.38% in December, though North America-focused hedge funds returned -3.46% in January.
  • Liquid Alts Suffer Again: UCITS posted negative returns for a second consecutive month recording -2.53% in January. Alternative mutual funds suffered losses of -2.53%, their greatest monthly loss since 2011.


“Having recorded gains of 2.02% through 2015, the hedge fund industry began 2016 with negative returns. January was the lowest monthly performance for the industry since May 2012, as only a handful of fund types and strategies posted positive returns. However, global economic headwinds have seen many public markets fall by in excess of 5%, so the industry has successfully hedged the losses of some investors.

CTAs saw their highest monthly performance since January 2015 while macro strategies were the only top-level hedge fund strategy to make gains in the first month of 2016. In light of the current market environment, these products — which can provide some non-correlation and downside protection — may see increased interest from investors over the coming months.”

Amy Bensted – Head of Hedge Fund Products, Preqin

No posts to display