Hedge Fund Success Traits Over Past Year... The ability to deliver absolute returns regardless of market conditions is an in-demand skill among fund managers. In short, gaining interest are small funds, some with an overseas exposure, particularly in Europe, and managed futures CTA strategies as well as macro investment methods all have been performing above average. While managed futures CTAs comprise only eight percent of Preqin’s hedge fund database, they more than double that number of the most successful, accounting for 19 percent of the top 100 performing hedge funds. Hedge fund fund of funds, by contrast, made up 17 percent of the total Preqin hedge fund universe but only accounted for 3 percent in the top 100. Macro strategies had the highest distribution of returns. As the best performing strategy in the top 100, with 27.51 percent performance over the study period, but the average performance of the strategy was 4.66 percent. Long / short hedged strategies in the top 100 generated 26.59 percent returns, while the strategy had an average performance of 7.91 percent. Typically the short end of the strategy drags down performance during bull markets. In regards to geographic region, the US led the pack of best performers, with 45 percent of the total funds in the top 100. But it was European hedge funds, on the back of difficult equity market performance in the region, that grabbed a large share of the top 100. Europe-based hedge funds represent 21 percent of all funds in the Preqin database, but grabbed 35 percent representation in the top 100. Within this subset, funds from the U.K. were most widely represented. Other funds from Asian and Latin America indicate a growing diversification of talent across the globe, the report noted.
Posted on: Wed, 26 Nov 2014 01:28:12 +0000
Trending Topics
Recently Viewed Topics
© 2015