Hedge Funds Year-To-Date Returns In Positive Territory For First Time In 2016 by Preqin
Overall returns of 1.44% in April move hedge fund performance to 0.70% for 2016 YTD
The Preqin All-Strategies Hedge Fund benchmark recorded the second consecutive month of positive hedge fund performance in April to bring 2016 YTD figures into the black for the first time this year. Returns of 1.44% through the month follow gains of 2.40% in March to put performance for 2016 so far at 0.70%, as hedge funds take advantage of calmer economic markets and improving commodity prices.
Clint Carlson's Carlson Capital Double Black Diamond fund returned 3.34% in August net of fees. Following this performance, the fund is up 8.82% year-to-date net, according to a copy of the firm's August investor update, which ValueWalk has been able to review. On a gross basis, the Double Black Diamond fund added 4.55% in August Read More
All leading strategies returned gains through the month, with event driven strategies up 2.17% and equity strategies returning 1.73%, making these the two strategies with the greatest returns for a second month running. Relative value funds posted the smallest gains of 0.47% and are the only leading strategy to still be recording losses (-0.05%) for 2016 YTD. Credit strategies continued from the robust returns seen in March to record gains of 1.25%, while multistrategy (+0.59%) and macro strategies (+1.02%) funds also saw healthy performance through April.
Other Key Hedge Funds Performance Statistics:
- Smallest Funds the Most Successful in 2016: Emerging hedge funds* saw gains of 1.78% in April and are the only size classification that can boast gains (+1.49%) through 2016. Large hedge funds have the worst year-to-date performance of any size classification with losses of 1.98%, despite posting slight gains of 0.09% in April.
- Systematic Losses: Discretionary funds outperformed systematic funds for the second consecutive month, posting gains of 1.71% compared to a 0.13% loss. However, so far in 2016 systematic funds have returned 0.44%, while discretionary funds have posted gains of 0.16%.
- CTAs Back in Black: Following losses of 1.10% in March, CTAs recorded positive performance in April with small gains of 0.14%. The fund type has reported year-to-date returns of 1.75%.
- Gains for Liquid Alts: Alternative mutual funds and UCITS both made gains in April with returns of 1.19% and 0.16% respectively. While UCITS funds are still seeing YTD losses of 1.61%, however, alternative mutual funds are posting 0.65% this year following two consecutive months of substantive gains.
“A second consecutive month of positive returns for the Preqin All-Strategies Hedge Fund benchmark in April is good news for the hedge fund sector, as the industry looks to progress from the negative returns seen at the start of 2016 and win back some investor approval.
Although commodity prices are continuing to rebound, several impending events – particularly the US election and the potential Brexit – could lead to returning volatility. However if hedge funds can continue to capture some alpha in the current environment and maintain this positive performance through H1, they can perhaps begin to look forward with optimism to the rest of 2016 and beyond.”
Amy Bensted – Head of Hedge Fund Products, Preqin