Amy Bensted, Preqin
The Preqin All-Strategies Hedge Fund benchmark returned 0.76% in April, its sixth consecutive month of gains, taking 2017 YTD and 12-month performance to 3.99% and 10.67% respectively. In contrast to the wider benchmark, macro strategies have posted two consecutive month of losses, having returned -0.27% in April and -0.09% in March. However, all other leading strategies have been above water in each month of the year so far. Equity and event driven strategies have outperformed the industry benchmark in 2017 posting robust returns in April of 1.03% and 0.87% respectively. Multi-strategy funds (+0.52%) and credit strategies (+0.21%) also enjoyed gains in April and, along with event driven strategies, have now posted 14 successive months of positive returns.
Other Key Hedge Fund Performance Facts:
- The Preqin All-Strategies Hedge Fund benchmark returned 0.76% in April, following on from gains of 0.74% in March, taking 2017 YTD performance to 3.99%.
- CTAs continued their recent up-and-down performance with gains of 0.49% in April, the fifth month in a row without consecutive positive or negative monthly returns.
- After losses in 2016, funds of hedge funds have recovered in 2017, posting gains of 0.59% in April to take year-to-date performance to 1.82%.
- Hedge funds larger than $1bn returned 0.86% in April; 2017 YTD performance (+4.14%) exceeds all other size classifications*.
- Emerging markets have made gains of 6.66% in 2017 YTD outstripping developed markets (+2.56%).
- Activist hedge funds have added positive returns in every month bar one (October) over the past year; gains of 1.17% in April take Activists 12-month performance to 15.96%.
- Discretionary hedge funds returned 1.06%, taking 12-month performance to 12.43% while, in comparison, systematic funds posted smaller gains of 0.75% in April and 7.09% over 12 months.
- Alternative mutual funds posted returns of 0.43% in April after losses in March (-0.19%), while UCITS returned 0.57.
Amy Bensted, Head of Hedge Fund Products said: "The run of strong returns over the past year has continued into April with the hedge fund industry adding another month of gains. Although the 12-month return of 10.67% exceeds the return expectations of most investors tracked by Preqin, fund managers are mindful of the fact that a significant number of investors are still concerned by the long- term value of the asset class, and are thus keen to ensure that this level of performance continues."