Commodity-focused hedge funds saw “strong performance” in 2021, with many seeing the energy transition towards renewables as a big opportunity and a USD3 billion uplift in investment across the index, according to Bridge Alternatives.
Commodity-focused hedge funds saw “strong performance” in 2021, with many seeing the energy transition towards renewables as a big opportunity and a USD3 billion uplift in investment across the index, according to Bridge Alternatives.
The findings came as part of the Bridge Alternatives Commodity Hedge Fund Index, a monthly report which is designed as a benchmark to track the performance of the largest commodity-focused hedge funds globally.
The index is reported on a monthly basis and includes the largest 15 hedge fund managers by strategy assets under management in North America. The index is rebalanced and reconstituted on an annual basis and has two weightings – an Equally Weighted Index and an Asset Weighted Index.
The Equally Weighted Index was positive in each month of 2021, whilst the Asset Weighted index had two very slight down months in January and March.
Overall, the Equally Weighted Index saw growth of 19.39 per cent over the year (2020: 25.35 per cent) and the Asset Weighted Index saw growth of 21.16 per cent (2020: 20.28 per cent), showing the second consecutive year of positive double-digit performance.
Separately, the assets raised by index constituents for 2022 grew to USD13.82 billion, up from USD10.26 billion in 2021.
