For the third consecutive month, over 70 per cent of all hedge funds produced positive results in February, according to eVestment’s latest Hedge Fund Industry Performance Report.
eVestment writes that the industry has needed to show consistency and decent returns to stem redemptions. Returns in 2017, and over the last 12 months, are much needed positive signs.
After average losses of 6.74 per cent in the last six months, and redemptions accelerating from the universe in Q4 2016 and into 2017, the largest managed futures funds excelled in February, returning +3.36 per cent, their best month since June 2016.
After a very strong 2016, activist’s average return of +2.53 per cent in February places the universe as the top performing strategy in early 2017.
As one of the only segments of the industry to see aggregate net inflows in 2016, commodity fund performance will be watched closely by investors. The universe was the only market/strategy segment to post declines in February.
The macro segment has been much maligned in the last couple of years, however performance within the largest funds, on an aggregate basis, has been more than decent. Average returns near 7 per cent in 2016, and 10 per cent in the last 12 months are likely being noticed by investors seeking return outside of traditional primary markets.
