New data from Preqin suggests that stock-picking hedge funds are set to record their worst performance in 10 years, according to a report by Reuters, with cumulative returns having dropped 12.24% in the 12 months ending 31 July. Year to date for 2022 the cumulative returns for stock-picking hedge funds are down 11.42%. The report says that the growing risks of a global recession, rising interest rates, and soaring inflation have all combined to create an “uncertain market backdrop” with the S&P 500 stock index down 16% so far this year and heading for its worst annual performance since 2008.

Over seven in ten investors (72%) say they are inclined to consider Absolute Return funds as part of their overall asset allocation, given the market conditions observed so far in 2022 and the increased correlation between the traditional asset classes of equities and fixed income. The findings, from a survey commissioned by Fulcrum Asset Management, point to an increasing interest in the asset class. Four in five (80%) respondents said they already had some Absolute Return exposure, and when asked about their asset allocation intentions over the next six months 70% said they planned to either increase exposure to Absolute

Pelham Capital’s flagship fund, the Pelham Long/Short Master Fund, gained 11.6% in July helping to cut the record losses suffered by the firm so far in 2022, according to a report by Bloomberg. The report cites an investor document as revealing that despite the gains, the fund is still down almost 33% up to the end of July, its worst ever performance since it started trading in 2007.  Pelham’s smaller Long/Short Small Cap Master Fund also made 10% last month, bringing its losses so far this year to 29%. another document shows.  Pelham, which was founded by former Lansdowne Partners

Following very strong performance throughout 2021 and a weak first quarter, hedge funds had further muted returns in Q2 – with commodities and hybrid capital funds again coming out on top – according to data from Citco. Analysing funds it administers, Citco’s 2022 Q2 Hedge Fund Report found that funds fell into negative territory for a second quarter running with a -6.81% overall weighted average quarterly return, with all AUA categories and all strategies – bar commodities at 4.58% and global macro at 0.79% – delivering negative returns. Over the quarter, 32.81% of funds delivered a positive return, a drop from

The number of traditional hedge funds investing in digital assets has almost doubled in a year to over one-in-three, according to a report by Business Review. The report cites PwC’s 4th Annual Global Crypto Hedge Fund Report 2022, produced together with the Alternative Investment Management Association (AIMA) and Elwood Asset Management, as revealing that of the traditional hedge funds surveyed, 38% are currently investing in digital assets, compared to 21% a year ago.  

Hedge funds Aspex Management (HK) Ltd and Oasis Management Co are among a group of Asia-focused funds that have increased their positions in Alibaba Group Holding Ltd and Sea Ltd during the second quarter of the year following a year-long rout of Chinese tech stocks, according to a report by Bloomberg. Thew report cites analysis of the latest 13F filings –  quarterly reports of US-listed holdings – of 15 Asian asset managers who had holdings of at least $200 million at the end of Q2, as revealing that the number of Alibaba shares held by the Asia-focused funds increased 311% during

The SS&C GlobeOp Forward Redemption Indicator for August 2022 measured 2.35%, up from 1.82% in July.

Hedge fund performance swung back into positive territory in July – following negative returns for much of this year – with all AUA categories and all strategies bar commodities posting positive weighted average returns. That’s according to the latest Monthly Hedge Fund Update report from hedge fund administrator Citco, which has assets of around $1.8 trillion under administration.  The overall weighted average return for hedge funds administered by the Citco group of companies was 3% in July, up from -2.4% in June and -1.1% in May. The firm’s commodity strategies, which have delivered strong returns so far this year amid