The 6th Hedge Weekly incorporating Investment Funds Performance Review by the HSBC Alternative Investment Group for the week ended February 07, 2014, presents a wealth of data on how funds performed in 2014 to date, duly analyzed by strategy.
Average returns by strategy as per the report are shown below in descending order of performance in the table below:
| Fund Type | Fund Category | 2014 YTD Returns % |
| Commodity | Managed Futures | 11.79 |
| Equity-Pharma-Biotech | Equity Long/Short | 4.84 |
| Equity-Healthcare | Equity Long/Short | 3.63 |
| Commodity-Systematic | Macro | 2.27 |
| Equity-Technology | Equity Long/Short | 1.98 |
| Convertible Arbitrage | Convertible Arbitrage | 1.76 |
| Commodity | Macro | 1.72 |
| Discretionary | Market Neutral | 1.60 |
| Equity Diversified | Market Neutral | 1.01 |
| Arbitrage | Fund of Funds | 0.54 |
| Distressed | Distressed | 0.49 |
| Credit Long/Short | Credit Long/Short | 0.44 |
| Fixed Income Arbitrage | Fixed Income Arbitrage | 0.35 |
| Equity-Financial | Equity Long/Short | 0.34 |
| Currency | Macro | 0.29 |
| Statistical Arbitrage | Market Neutral | 0.28 |
| Diversified | Multi-Strategy | 0.28 |
| Event Driven | Fund of Funds | 0.27 |
| Merger-Arbitrage | Merger-Arbitrage | 0.18 |
| Equity-Mid-Small Cap | Equity Long/Short | 0.17 |
| Multi-Strategy | Market Neutral | 0.11 |
| Multi-Strategy | Fund of Funds | 0.07 |
| Multi-Strategy | Event Driven | 0.01 |
| Equity-Real Estate | Equity Long/Short | 0.00 |
| Equity-Utility | Equity Long/Short | 0.00 |
| Systematic | Macro | 0.00 |
| Fixed Income | Managed Futures | 0.00 |
| Credit | Multi-Strategy | 0.00 |
| Currency | Managed Futures | -0.03 |
| Long/Short | Fund of Funds | -0.09 |
| Systematic | Market Neutral | -0.11 |
| Arbitrage | Volatility Arbitrage | -0.11 |
| Equity-Commodity | Equity Long/Short | -0.20 |
| Fixed Income | Macro | -0.24 |
| Trading | Fund of Funds | -1.05 |
| Equity-Diversified | Equity Long/Short | -1.13 |
| Diversified | Macro | -1.42 |
| Equity-Energy | Equity Long/Short | -1.48 |
| Macro | Fund of Funds | -2.29 |
| Systematic | Managed Futures | -2.82 |
| Equity-Diversified | Event Driven | -5.00 |
| Equity-Diversified | Long Only | -7.05 |
HSBC: Commodities on investors’ radar again?
It is interesting that a number of commodity biased funds have made an appearance at the top of the table, while the two worst performing types are equity-oriented. Defensive equity sectors such as healthcare and pharma biotech are also right there at the top sharing space with technology.
The top performing commodity fund in the managed futures category, which scored a YTD return of 11.79% bears mention.
HSBC: Using weather to score on energy futures
The fund is the Cumulus Energy Fund Class A USD managed by Peter Brewer, with assets under management of $413M as of Dec 13.
The fund trades energy futures and its trading edge is the ability to make accurate calls on weather conditions (such as rainfall, temperature and wind) that have a direct bearing on the power and energy markets.
The fund has earned annualized returns of 28.71% since its inception in September 2006.
