Hedge fund performance dipped last month with a weighted average return of -0.3% after a strong start to the year, with several strategy types – including commodity and equity strategies – experiencing a negative month, according to the latest data from asset servicer Citco.
Nonetheless, YTD the weighted average return for hedge funds still stood at 3.7%, and demand from investors was strong, with inflows climbing month-on-month.
All-in-all, some 55% of hedge funds administered by Citco achieved positive returns in February 2025.
Global macro funds led the way with a weighted average return of 2.2%, followed by event-driven funds at 0.2%. All other funds were negative, with a multi-strategy funds performing worst with a weighted average return of -0.7%.
Asset under administration categories also showed diminished performances across the board, with mid-sized funds performing the best. Those with AUA between $500m and $1bn saw a 0.3%, while funds with $1bn to $3bn in assets were up 0.1%. The largest funds, with over $3bn, performed worst, achieving -0.6% weighted average return.
The rate of return spread rose as the difference between 90th and 10th percentile fund returns fell back to 7.4%, from 8.5% in January.
In terms of net inflows, February was a strong month, reaching $3.1bn overall, as investor demand continued.
Funds in the Americas ($2.7bn) and Europe ($1.5bn) both saw positive net inflows in February; with a net outflow of $1.2bn in Asia.
Treasury payments processed by Citco, meanwhile, came in at over 50,000 once again, maintaining the strong start to the year, with a 14% year-on-year increase from February 2024 to reach 53,765.
